Greatbatch Medical Opens Orthopedic Manufacturing Center in Midwest

Greatbatch Medical Opens Orthopedic Manufacturing Center in Midwest

After announcing the project in January 2011, Greatbatch Medical has opened an 80,000-square-foot
orthopedic manufacturing facility in Fort Wayne, Ind. The company has been making a concerted effort to grow its vascular and orthopedics business over the past few years through acquisitions and expansions.

In 2010, the subsidiary of Greatbatch Inc. established an orthopedic design center in nearby Warsaw, Ind., where it provides rapid prototyping capabilities. Last year, Greatbatch Medical dropped $6 million into its Indianapolis, Ind., manufacturing location, which produces orthopedic delivery systems. Also happening this summer is Greatbatch Inc.’s move to its new headquarters in Frisco, Texas.

“This $17 million investment is the third project Greatbatch Medical has deployed as part of an overall strategy to partner with orthopedic device makers,” said Mauricio Arellano, president of Greatbatch Medical. “We have made strategic investments with a focus on growing our global orthopedics business through a sound commercial strategy, continuous investments in medical device innovations and streamlined operations and best in class execution.”

Greatbatch president and CEO Thomas J. Hook said Greatbatch Medical will continue to focus on new medical device segments.

“Our company’s vision is to be the definitive leader in critical technologies by infusing integrity, innovation and operational excellence,” Hook said. “This investment is a critical part of our growth strategy as we strive to achieve growth in our core business, growth through targeted acquisitions and growth through new, innovative medical devices.”

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The facility is named the Susan H. Campbell Orthopaedic Center, in honor of the late senior vice president of Greatbatch Medical Orthopaedics, who died in late 2010.

The center will develop instruments for hip procedures and spine fixation, as well as fracture fixation implants and instrumentation for orthopedic device companies. The new facility should provide Greatbatch Medical with increased capabilities and capacity for future growth, executives predict.
Arellano thanked the Indiana Economic Development Corporation, Fort Wayne city officials, Allen County administrators and the Allen County-Fort Wayne Economic Development Alliance in a statement.

“They have been great partners supporting our investment and growth in Indiana,” he said. “With their support we are poised for success that will benefit not only Greatbatch Medical and our associates but the local community as well.”

Greatbatch Inc.’s brands are Greatbatch Medical, Electrochem and the QiG Group. The company focuses on the cardiac, neurology, vascular and orthopedic markets, while Greatbatch Medical is responsible for the design and manufacture of critical technologies used in medical devices for the cardiac rhythm management, neuromodulation, vascular access and orthopedic sectors.

Precision Engineered Products Opens Facility in Caribbean
Precision Engineered Products LLC (PEP), based in Attleboro, Mass., is opening a new manufacturing facility in the Dominican Republic. This will increase the company’s global manufacturing presence; it already has locations in China, Brazil, Mexico, and the Netherlands, as well as the United States.

The facility is 5,000 square feet, and it is a Class 8 medical manufacturing space. It is located in the Zona Franca Industrial (free economic zone) in San Pedro de Macorís—an area that is very lightly taxed.

PEP has announced it immediately will begin producing surgical staples, and will expand to include complementary molding, stamping, and assembly capabilities.

“The new Precision Engineered Products medical manufacturing facility in the Dominican Republic better positions PEP to deliver the highest quality surgical and medical devices and components to our customers at the best possible value,” PEP President and CEO Alan Huffenus said of the initiative. “This strategic investment increases PEP’s manufacturing agility, and ultimately improves support of our customers’ operations worldwide.”

The Dominican Republic facility is the second PEP operation devoted principally to medical manufacturing. The company’s Bridgeport, Conn., location is home to medical and surgical business units Lacey Manufacturing and Boston Endo-Surgical Technologies LLC.

Brands produced by PEP include Boston Endo-Surgical Technologies, Brainin, General Metal Finishing, Lacey, microPEP, Polymet, and Wauconda.

Automotive Manufacturer Partners with Medical Manufacturers to Develop New Micro-Machining Process
Delphi Automotive is partnering with medical component manufacturers Raydiance Inc. and Microlution Inc. in the development of a new micro-machining system. The U.S. Department of Energy (DOE) has granted Delphi $3.7 million to develop this system for the machining of complex shapes. The system will use high-speed laser technology, and will purportedly be able to enhance
production of flow control in Delphi’s direct injection fuel injectors. The DOE awarded more than $54 million—leveraging approximately an additional $17 million in cost share from the private sector—for 13 projects across the country to advance transformational technologies and materials that can help American manufacturers dramatically increase the energy efficiency of their operations and reduce costs.

“By investing in breakthrough technologies that can drastically reduce the amount of energy consumed during manufacturing, the Energy Department is supporting President Obama’s blueprint for an economy built on American manufacturing, American energy, and skills for American workers,” said U.S. Energy Secretary Steven Chu. “When it comes to clean energy, our motto should be: ‘Invented in America, made in America, and sold around the world.’ The projects announced today will improve the competitive position of U.S. industry and help manufacturers produce more while saving energy, saving money and protecting our air and water.”

Delphi claims that with these funds from the DOE it will be able to increase laser machining energy efficiency up to 25 percent compared to standard practices while eliminating secondary processes such as etching, deburring or surface cleaning.

While Delphi is partnering with Raydiance and Microlution, the system will be developed at Delphi’s manufacturing facility in Rochester, N.Y.

“We are very pleased to partner with the U.S. Department of Energy for these activities at our Rochester facility,” said Jeffrey Owens, chief technology officer at Delphi Automotive. “This project has energy-saving implications and applicability across numerous industries and our working relationship with the Department of Energy is critical to advancing these important initiatives.”

Based in Troy, Mich., Delphi manufactures technology mainly for the automotive industry—but the company does provide products for other industries including medical, e.g., strip connectors for diabetic glucometers.

Raydiance is headquartered in Petaluma, Calif., and develops and produces precision manufacturing solutions enabled by femtosecond laser technology.

Microlution is a Chicago, Ill.-based machine tool manufacturer specializing in building high-performance manufacturing equipment that has been optimized for the fabrication of small, high-precision parts.

Symmetry Surgical Signs Distribution Deal in Japan, Expands Neurosurgical Line
Nashville, Tenn.-based Symmetry Surgical has entered into a distribution agreement with Japan Surgical Specialty (JSS), according to which JSS will distribute all of Symmetry’s major medical brands in Japan. Symmetry Surgical is a subsidiary of Warsaw, Ind.-based Symmetry Medical Inc., which produces surgical instruments, orthopedic implants, and sterilization cases and trays.

JSS was founded in 1991 and is part of the Intermed Japan Group. The company has a countrywide distribution network in Japan, including dedicated logistics and service facilities.

“Launching the entire Symmetry Surgical instrument portfolio into Japan, the world’s second largest medical device market, represents a key milestone in our global expansion process and integration of the newly acquired Codman Surgical Instruments portfolio,” said Chris Huntington, Symmetry Surgical’s chief operating officer. “In partnership with JSS, we are excited about the opportunity to drive growth of our existing business in Japan and introduce new Symmetry Surgical brands to this important marketplace.”

The company also is expanding its micro instrument portfolio with the addition of new neurosurgical line extensions. The micro instruments produced by Symmetry Surgical are single-shafted mechanical micro instruments specifically designed for neurosurgical procedures. The new products include the release of a specially designed instrument tray that holds the comprehensive set of 33 micro instruments.

The tray provides tailored protection to the micro instruments’ 2-millimeter bayonetted shafts. It includes a removable lid and an independent shelf and base that can be placed directly on the back table in an operating room to keep the tools organized.

“The new micro instruments and custom tray create a great deal of value and efficiency for neurosurgeons,” Huntington said. “Their innovative designs are synergistic to other innovations in the neurosurgical space and are in-line with our goal to help facilitate excellent clinical outcomes and operating room efficiency for our customers.”

Symmetry Surgical was formerly Johnson & Johnson’s Codman Instruments unit before Symmetry Medical acquired Codman and Shurtleff along with its instruments division in January. Some of the brands produced by Symmetry Surgical are Bookwalter, Greenberg, Riley, Olsen, and Ultra, among others.

Philips Opens Facility in India
Royal Philips Electronics N.V. has opened a new medical imaging systems manufacturing facility in Chakan, India. The Philips Development and Manufacturing Center is located approximately 125 miles east of Mumbai, in Chakan, near Pune.

The plant will focus on diagnostic and interventional imaging solutions, and will serve mainly smaller hospitals in the country with limited budgets.

“We will continue to provide top hospitals in the cities with our high-end equipment from Best, the Netherlands,” executive vice president at Philips Healthcare Bert van Meurs told Bloomberg. “At the same time we will supply smaller hospitals with machines from this facility in India, which require less complex products because the medical procedures at those places are less complicated.”

At first, the products will be designed for the Indian market, but will soon be marketed globally. They eventually will be marketed to the “value segment,” as company spokesperson Steve Klink put it, in the BRIC nations and other regions in Asia that are looking for entry-level products. At the same time, the facility was designed for flexibility in manufacturing, so it also will be able to aid mature markets that are seeking upgrades or replacements for their entry-level diagnostics devices.

The first products to be manufactured in the facility will be diagnostic X-ray systems and the Allura FC, Philips’ first catheterization lab (cath lab) in India. The Allura FC cath lab, a compact cardiovascular X-ray system, is used in the diagnosis and minimally-invasive treatment of cardiovascular disease, which is one of the leading causes of death in India.

“This plant is an example of how Philips can combine its technology strengths and market knowledge to manufacture products for a healthier India,” said Rajeev Chopra, managing director and vice chairman of Philips India. “The Pune facility is producing X-ray and cath lab equipment … that is affordable for tier-two and tier-three towns and rural markets.”

Locating the facility in India allows Philips to develop and maintain close relationships with local partners, said Gene Saragnese, CEO of Imaging Systems at Philips Healthcare.

“In order to make a difference in this market, we need local expertise, low-cost manufacturing capacity and close relationships with our customers.”

Local relationships indeed are important. As Amy Hariani, director and legal counsel for U.S.-India Business Council, said recently at the Medical Device Manufacturers Association’s annual meeting in Washington, D.C.: “You don’t need a local partner, but because of … their familiarity with the
culture, it’s advisable to do so. They can help the navigate regulatory maze and they will have knowledge of the distribution networks and hospitals.”

According to a press release announcing the new facility, Philips has conducted “in-depth research to understand the on-the-ground requirements,” and has “worked closely with healthcare partners to gain better insight into their ‘Made in India’ needs.” Philips is basing its game plan on the results of this research, which shows that low operating costs, energy-efficiency, easy serviceability and support for high patient volumes, are critical to increasing healthcare access in India and thereby improving patient outcomes. Philips will tailor its offerings from the new facility to these unique factors for the Indian market.

In 2008, Philips initiated the expansion of its industrial and commercial footprint in India with the acquisition of Alpha X-ray Technologies and Meditronics, manufacturers of cardiovascular X-ray solutions and general X-ray systems, respectively.

Philips Healthcare is a subsidiary of Royal Philips Electronics N.V., and has its U.S. headquarters in Andover, Mass. Philips Healthcare produces a range of technology for diagnostics, treatment and preventative care.