Baxter Plans Big Investment in China Medical Instruments Industry

Release Date: 2009-05-24

Baxter International Inc. (NYSE: BAX) recently unveiled a plan to spend 1 billion RMB ($147 million) over the next three years to upgrade factories in Guangzhou, Suzhou, Tianjin and Shanghai. The company positioned the investment as a response to China’s demand for high-quality medical instruments.

Baxter said that 60% of its business comes from outside the US, but only $200 million of its $12.3 billion of revenue was derived from China. Although the company expects 7% sales growth worldwide this year, it projects double-digit growth in China.

The plant build-up will increase supply of intravenous solutions and peritoneal dialysis products. Baxter said the bigger plants will eventually add 2,500 more employees, of whom 1,000 will be hired this year.

Baxter makes intravenous drug pumps, renal and other products in China.

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Url:	http://seekingalpha.com/article/139294-baxter-plans-big-investment-in-china-medical-instruments-industry