Datwyler has signed a contract to acquire the Chinese company Yantai Xinhui Packing Co. Ltd. Closing of this contract is subject to the anticipated fulfilment of the customary closing conditions during the first quarter of 2022. The details of the contract are undisclosed. This strategically important acquisition will provide Datwyler direct access to the rapidly growing healthcare market in China.
Yantai Xinhui Packing boasts high technological standards in its production. By applying our additional core competencies in solutions design and materials expertise, we are creating an optimal platform to accelerate growth in the Chinese market.
I’m delighted that Yantai Xinhui Packing will become part of the globally active Datwyler company. With Datwyler’s many years of experience and expertise, we can benefit even more from the growth of the Chinese healthcare market in the future.
CEO of Yantai Xinhui Packing
The family-owned company Yantai Xinhui Packing was founded in 2003. In 2017, the company invested in building a new production plant in Shandong province in northeastern China. Yantai Xinhui Packing has automated production facilities for elastomer components for the healthcare market, its own development department and its own compounding facility. With some 170 employees, the young and modern company has annual revenue of some CHF 15 million. The current management will remain in place, thus ensuring continuity in serving the Chinese healthcare market. When integrating Yantai Xinhui Packing, Datwyler can draw on its many years of experience with its own Chinese plants for the automotive and industrial markets with some 1’500 employees in China.
China is the biggest emerging market for pharmaceuticals. The rapidly growing middle class is eager for up-to-date healthcare and effective medications. The People’s Republic is already the second largest national pharmaceutical market in the world after the USA. Based on the revenue potential of its approximately 1.4 billion people, Datwyler expects the relevant healthcare market in China to grow above 10% over the next few years. With Yantai Xinhui Packing Datwyler acquires an important local presence in China, which will enable the company to play an active role in the Chinese healthcare market and participate in its growth much more than before. The up-to-date production facility with reserve capacity will be the optimal platform for local production of Datwyler’s product range for the Chinese healthcare market.