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Updated: Phillips-Medisize acquires Adval Tech injection molding units in China, Mexico

The Adval Tech Group is selling injection molding businesses in Mexico and China to Phillips-Medisize, as it changes strategy to concentrate on moldmaking and select components, while Phillips-Medisize builds on a stated strategy of offering customers global manufacturing and design with local production and development capabilities. Phillips-Medisize said in a release that it intends on retaining all 350 employees, and will actually expand its drug delivery development engineering capabilities by adding three engineers.

PlasticsToday Staff

July 25, 2013

2 Min Read
Updated: Phillips-Medisize acquires Adval Tech injection molding units in China, Mexico

Phillips-Medisize is purchasing Adval Tech Medical (Suzhou) Co. Ltd in Suzhou and Omni Manufacturing Services S.A. de C. V. in Querétaro, Mexico. The Suzhou operation is described as a "medical technology facility" that is ISO 9001 and 13485 compliant and SFDA certified to manufacture finished drug delivery systems and related medical devices. The Querétaro site is also ISO 9001 and 13485 compliant and FDA registered to manufacture components and subassemblies, drug delivery systems and other related medical devices. The Mexico facility is also manufacturing injection molded components and decorative components for automotive and consumer applications.

A Phillips-Medisize spokesperson told PlasticsToday that both the China and Mexico sites have Class 8 clean room assembly and molding spaces, with pesses and assembly mostly dedicated to  drug delivery programs. Specifically, Querétaro has 10,100-sq-m of production space, with 1400 sq m of cleanroom that is "easily expandable", according to the spokesperson. That plant has 61 injection molding machines and included dedicated, automates assembly equipment.

Suzhou has 3470 sq m of production space, including an expandalbe Class 8 cleanroom, with dedicated injection molding machines and automated assembly.

Adval Tech Group stated in a release that Swiss Capital Corporate Finance AG, Zurich was commissioned to investigate possible joint venture and sale options, with the company adding "Adval Tech has now found the perfect buyer in the form of Phillips-Medisize." The company also stated that sale does not affect its Teuscher Kunststofftechnik AG unit.

Realigning a business after an acquisition spree
Adval Tech is composed of seven businesses (AWM, Foboha, Teuscher, Omni, Styner+Bienz, QSCH, Adval Tech Medical), with metal forming/stamping, plastic injection molding, and moldmaking capabilities spread among 16 manufacturing sites that serve the automotive, medical, and consumer goods markets.

The Querétaro and Suzhou operations sold to Phillips-Medisize fall under Omni and includes injection molding and assembly for consumer goods, medical, and automotive.

The Adval Tech name was launched in 1997 as part of a strategic refocusing, before becoming an umbrella brand for a number of acquisitions. At its launch, Adval Tech was comprised of Styner+Bienz, founded in 1924, which acquired plastic injection molder AWM in 1974. In subsequent years the company acquired Foboha (2004), Lanz (2005), Teuscher Kunststoff-Technik (2007), QSCH (2008), and Omni Group (2008).

From 2008 onwards, annual income for the whole group has fallen in every year but one, dropping from CHF 416.5 million to CHF 279.6 million in 2012. Over the same time, Adval Tech's components segment went from CHF 299.3 million in revenue to CHF 218.3 million in 2012, while the molds segment fell from CHF 92.8 million to CHF 67.6 million. Earnings, however, actually rose for the molds segment, climbing from CHF 3 to 4.1 million.  The company employed 2239 total in 2012, 1876 in components and 345 in molds.

Phillips-Medisize is headquartered in Hudson, WI and employs more than 2100 people in 19 locations throughout the U.S., Europe, and China. The company also has design centers in Wisconsin, California, and The Netherlands.

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