(Yicai) Oct. 9 -- Boston Scientific will build its first factory in China in the Lingang New Area of the Shanghai Free Trade Zone, as the US medical device giant becomes the latest multinational pharmaceutical firm to localize production, Yicai has exclusively learned.

Global Chief Executive Officer Michael Mahoney attended the signing ceremony today during his first visit to China since the end of the pandemic. The amount of investment was not disclosed and it is likely to still be some years before the project is commissioned.

Boston Scientific can cut production costs and benefit from local preferential policies if it sets up a factory in the country, industry insiders told Yicai.

Many foreign pharma firms are setting up production bases in China and linking arms with Chinese companies to develop innovative medical products and to qualify for the national healthcare bulk-buy program, which allows medical apparatus makers to gain access to the country’s vast medical insurance scheme.

Boston Scientific is also teaming up with Acotec, a wholly foreign-owned enterprise based in Beijing, to collaborate on research and development, manufacturing and commercialization over the next three years, according to the deal signed between the two parties in July.

Medtronic is also building a plant in Lingang with an initial investment of CNY300 million (USD41.1 million), the world’s largest medical device maker said in February last year.

Boston Scientific, which is a leading manufacturer of minimally invasive interventional medical device products in fields such as endoscopy, urology and neuromodulation, raked in revenue of USD3.6 billion in the second quarter, and last year it scored global revenue of USD12 billion.

Editors: Tang Shihua, Kim Taylor