MEDTRONIC ESTABLISHES WHOLLY FOREIGN OWNED ENTERPRISE IN CHINA WITH NEW OFFICES AND MANUFACTURING PLANT IN SHANGHAI
SHANGHAI, People's Republic of China, Feb. 7 /PRNewswire/ -- Medtronic, Inc., (NYSE NYSE
See: New York Stock Exchange : MDT) announced today that the company has been qualified as a Wholly Foreign Owned Enterprise Wholly Foreign Owned Enterprises (WFOEs) have become the investment vehicle of choice for the international investor wishing to manufacture, process, or assemble in China. It negates the need for a Chinese partner and does not require large amounts of registered capital to fund. (WFOE) and will establish new offices and a manufacturing facility in the Zhangjiang Hi-Tech Park here.
The company has acquired land use rights to a 5,600-square-meter site and plans to begin constructing the new facility this summer. Assembly of cardiac pacemakers is expected to be under way there in mid- 1997. The Medtronic Champion(R) pacemaker, a totally new pacing system for China and developing nations, will be the initial product manufactured in the new facility.
Michael J. Costello, vice president, Far East, said Medtronic's investment of about $10 million "demonstrates Medtronic's continuing commitment to the building of long-term relationships and to leadership in the development of cardiovascular medicine in the People's Republic."
Art Collins, chief operating officer Chief Operating Officer (COO)
The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , said, "We have been impressed by the economic resurgence in China. We're confident that our new organization and increased investment will allow Medtronic to build upon the company's established Chinese leadership in cardiovascular and cardiac surgery products to introduce a broader product line to the Chinese medical community."
Medtronic is the market leader in China for pacemakers and several other product lines. The company expects the Chinese markets for angioplasty catheters and coronary stents to develop rapidly and to offer additional opportunities for Medtronic.
Medtronic entered the Chinese market in the 1970s and has been building relationships with key physicians there for more than 20 years. Physicians concentrated in major Chinese population centers are rapidly adopting advanced western medical therapies and techniques, and the company will work with leading medical institutions and appropriate government authorities to extend its network of educational centers in the country.
Medtronic, Inc., is the world's leading medical technology company, developing and manufacturing therapies for improving cardiovascular and neurological health. Headquartered in Minneapolis, Minn., it employs 10,700 people doing business in more than 120 countries. Revenues
exceeded $1.7 billion in fiscal 1995. The company's Internet address is http://www.medtronic.com. -0- 2/7/96 /CONTACT: Dale Beumer, Investor Relations, 612-574-3038; Dick Reid, Public Relations, 612-574-3052, both of Medtronic; Mike Costello, Medtronic China, Hong Kong, (852) 25721925; Jean Michel Dumont, Edelman China, (86-21) 6279 2117/
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