Thermo Electron Corporation announced the opening of its new manufacturing facility in Shanghai, China. The 90,000 square-foot factory is a major milestone in Thermo's China strategy, and increases manufacturing capacity in Shanghai by more than four times.
"Building Thermo's capabilities in China, particularly manufacturing, is a core part of our long-term expansion strategy in the fastest growing region in the world," noted Ken Berger, president of Thermo Electron China.
"Thermo is committed to building its presence in the Asian market, and the opening of this facility marks the next step in our strategy. This region delivers a deep pool of talented employee resources as well as new customer and partnership opportunities. We continue to see potential for significant growth in this market."
The manufacturing center will add up to 300 new jobs when operating at capacity, producing 10 products initially, and expanding to more than 20 products by 2006. Thermo products manufactured at the site will expand from products such as Atomic Absorption instruments, plate readers and sample preparation equipment to include metal detection and environmental instruments. In addition to its role as a center for Asian operations, it is expected that this site will become a central point for supply chain management and logistics for Thermo worldwide.
China currently accounts for five percent of the company's total revenue. The new Shanghai facility will enhance global cost reduction for Thermo, streamlining manufacturing processes with its proximity to low cost sources for components.
During 2004 alone, Thermo has made significant progress in China. Accomplishments to date include the establishment of a strong local management team, attaining significant revenue growth across a broad spectrum of end-use markets and continued investments in manufacturing, personnel and processes in China.
In dedicating the new facility, Marijn Dekkers, president and chief executive officer of Thermo Electron, said, "Thermo intends to build upon the close relationships formed with government officials and customers as we continue to expand Thermo's brand presence throughout Asia. The pool of employee talent available, combined with local access to low cost components, will allow Thermo to remain competitive, grow and provide strong value for our customers. We expect great things to come from our presence in China, and we're proud to be working here and around the world, making products that enable our customers to make the world a healthier, cleaner and safer place."
In addition to the new site, Thermo operates a manufacturing facility in JinQiao. Commercial locations include major offices in Shanghai, Beijing and Hong Kong, as well as a newly opened office in Guangzhou.