(Yicai) Jan. 17 -- Siemens Healthineers has kicked off construction of its new research, development, and production base in China's Shenzhen, in which the German healthcare equipment manufacturer invested over CNY1 billion (USD136.5 million).

Expected to be completed and put into operation by the end of 2027, the facility will research, develop, and produce angiography equipment and core parts for magnetic resonance imaging systems, including the company's new Dry Cool innovative superconducting magnet, Siemens Healthineers announced yesterday.

This R&D and production base will be Siemens Healthineers' second in Shenzhen. The first one, established over two decades ago, has become one of the firm's largest R&D and manufacturing hubs outside its headquarters, and it is also the only facility in Siemens Healthineers' global MRI operation system with a complete industrial chain.

"We have unwavering confidence in the Chinese market," Wang Hao, president of Siemens Healthineers China and member of its Leadership Committee, told Yicai. "The groundbreaking of the new Shenzhen base demonstrates our resolution to advancing localization.

"By enhancing the local R&D and production of high-end medical devices and core components, Siemens Healthineers aims to expand the breadth and depth of product localization," Wang pointed out. "And through building regional open innovation platforms, the company also intends to collaborate with partners to create a more resilient and sustainable medical innovation ecosystem."

Despite Siemens Healthineers' short-term challenges in China, Wang said he remains optimistic about the long-term growth perspective of the Chinese market, thanks to its large size, aging population, and rising health awareness that result in increasing medical needs. Moreover, China's per capita ownership of medical devices is still far behind that of developed countries.

The Chinese government is promoting a three-year action plan to upgrade large-scale medical equipment, which is expected to bring about new opportunities for the industry's development, Wang noted.

Companies are now being tested on their ability to attract customers with more competitive prices and improved service, he added.

Editor: Futura Costaglione