New Ethicon Factory to Open at Johnson & Johnson Medical Devices Suzhou Industrial Park - Minimally invasive and open surgical equipment manufacturing technology reaches in China

Hero Image

The new Ethicon factory has attracted overall investment of 180 million US dollars
to implement the “health dream” of the Chinese market

November 2, 2017, Suzhou, China — Johnson & Johnson Medical Devices today held a grand groundbreaking ceremony for its new 180-million-dollar Ethicon factory to open at Suzhou Industrial Park. This is yet another milestone project in Johnson & Johnson’s continued investment in China, and marks Johnson & Johnson Medical Devices’ first foray into introducing minimally invasive and open surgical equipment manufacturing technology to China. The new Ethicon factory covers 14,776 square meters and is expected to begin formal operation in 2019.

    This new factory will manufacture high-quality, innovative surgical equipment that will help physicians to more effectively treat common severe diseases such as lung, liver, and stomach cancer. This increased investment will continue to transform and upgrade the value chain of China's medical equipment industry and help achieve China’s “health dream.” Officials from the Jiangsu Provincial Party Committee, the Suzhou Municipal Party Committee, and the Suzhou Municipal Government joined company management representatives in attending this event.

To Serve China and Proactively Respond to the Rapidly Growing Local Needs

    Vladimir Makatsaria, group chairman for Johnson & Johnson Medical Devices China and Asia-Pacific, said at the groundbreaking “China is a key element of Johnson & Johnson Medical Devices’ global growth strategy. The new Ethicon factory will enable us to more effectively address the continuously evolving needs of the Chinese market and contribute even more to the viability of the Chinese medical and healthcare industries. This important investment project is a significant step in our efforts to serve the needs of local doctors and patients and to cultivate the Chinese market. Looking towards the future, we will continue to provide a greater number of safe, effective, and novel surgical solutions to China to help the Chinese people live longer, healthier, happier lives.”

Once the new Ethicon factory has been completed, it will be equipped with the world's top surgical equipment manufacturing technology and will produce Johnson & Johnson’s widely used patented medical devices, including the world's first triclosan-coated antibacterial suture, Ethicon’s VICRYL® Plus absorbable surgical suture, endoscopic staplers, and linear cutters. The introduction of the manufacturing process for Ethicon’s antibacterial VICRYL® Plus absorbable surgical suture also fills the current void in China's production of triclosan-coated antibacterial suture products.

These surgical devices effectively decrease the incidence of surgical site infection and other life-threatening postoperative complications, thereby improving patients’ postoperative quality of life. In addition, this project is expected to promote minimally invasive surgery to treat critical diseases such as lung cancer, allowing more Chinese patients to benefit from this less traumatic treatment option that offers improved prognoses.

 Continued Collaboration with China to Upgrade the Value Chain of Medical Device Manufacturing

    Johnson & Johnson also plans to gradually localize the procurement of raw materials and equipment once the new Ethicon factory has gone into operation. The company will provide management and training for local partner suppliers so as to further promote the upgrading of technological and management standards both upstream and downstream within the industry.

The Suzhou Industrial Park Administrative Committee expressed its appreciation to Johnson & Johnson for its foresight and resolve, stating “We trust that by continuing to deepen cooperation with leading transnational pharmaceutical companies such as Johnson & Johnson and promoting world-class quality control standards locally, Jiangsu and Suzhou can spearhead the transformation and upgrade of China's pharmaceutical industry. This will lead to even greater breakthroughs that permit a greater number of Chinese people to enjoy equitable and accessible high-quality health care, fulfilling the people's desire for a better life in this new era.”

    This investment by Johnson & Johnson Medical Devices coincides with a critical period in the transformation and upgrade of China's medical devices industry, and will help to reach the Chinese government’s goal of narrowing the gap between China and developed countries in terms of medical device innovation capabilities and supply security.

 Johnson & Johnson Medical Devices started to actively invest and set out its plans for the Suzhou Industrial Park in 2006, at the time of establishing the Johnson & Johnson orthopedic medical device factory in Suzhou. Later, in 2011, the Johnson & Johnson Asia-Pacific R&D Center opened in the industrial park; today, the Ethicon factory is also taking shape in Suzhou. After 11 years of operation and development, the Johnson & Johnson Suzhou Industrial Park, with an area of ​​278,000 square meters, has become a comprehensive industrial park combining R&D, manufacturing and technical cooperation into a diversified business that radiates throughout the entire Johnson & Johnson Asia-Pacific region, highlighting China's growing strategic position in Johnson & Johnson's global value chain.

-End-

About Johnson & Johnson (China) Medical Devices, Ltd.

Johnson & Johnson (China) Medical Devices, Ltd., was established in 1994 and is an independent Johnson & Johnson company in China. It is mainly involved in the production and sales of advanced medical equipment through its subsidiary Johnson & Johnson (Shanghai) Medical Devices, Ltd. Its business covers cardiovascular disease treatment, surgical sutures, minimally invasive and open surgery, orthopedics, women's health, and products for sterilization and disinfection. The company currently employs over 3500 people and is headquartered in Shanghai, with offices in Beijing, Guangzhou, Wuhan, Nanjing, Jinan, Hangzhou, Chongqing and Chengdu; together, they offer the very best products and services to Chinese consumers.

Established at Suzhou Industrial Park in 2006, Johnson & Johnson (Suzhou) Medical Devices., Ltd., was designed to offer diversified operations in an industrial park setting. The park currently includes medical equipment manufacturing and R&D, global shared services (finance, human resources, procurement), regional procurement, supplier identification management, and other operating brands, rooted in networked cooperation, resource sharing, and mutually beneficial development. Johnson & Johnson Suzhou Industrial Park has nearly 1,000 employees; in the next few years, as other Johnson & Johnson brands and projects spring up locally, Johnson & Johnson Suzhou Industrial Park, with a total area of ​​278,000 square meters, will become fully utilized and developed.

About Ethicon

Ethicon, Inc., is a subsidiary of Johnson & Johnson Medical Devices. From developing the first sutures, to opening up a new world of minimally invasive surgery, Ethicon has made important contributions to surgery for over 60 years. Ethicon’s unwavering promise to "Shape the future of surgery" is built on our commitment to address the world's most challenging health care needs, improve quality of life, and fuel hope for life. Through Ethicon's surgical technologies and devices including sutures, staplers, trocars, and hemostats, as well as our commitment to delivering treatments worldwide for severe illnesses like obesity and cancer, we bring innovation that improves both the health and lives of the population. For more information, please visit www.ethicon.com

Cautions Concerning Forward-Looking Statements

This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding the construction of a new factory in Suzhou, China and expectations for timing, sourcing, production, benefits and impact of the project. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson Medical (China) Ltd., Johnson & Johnson Medical (Shanghai) Ltd., any of the other Johnson & Johnson Medical Devices Companies and/or Johnson & Johnson. Risks and uncertainties include, but are not limited to: various obstacles and challenges that could impede the timing, completion or costs involved in the factory construction; changes in the legal and regulatory environment; the potential that the expected benefits and opportunities of the factory, if completed, may not be realized or may take longer to realize than expected; supply chain disruptions; manufacturing difficulties and delays; competition, including products and patents attained by competitors; changes in behavior and spending patterns of purchasers of health care products and services; and trends toward health care cost containment. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended January 1, 2017, including under “Item 1A. Risk Factors,” its most recently filed Quarterly Report on Form 10-Q, including under the caption “Cautionary Note Regarding Forward-Looking Statements,” and the company's subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Neither the Johnson & Johnson Medical Devices Companies nor Johnson & Johnson undertakes to update any forward-looking statement as a result of new information or future events or developments.

Media contacts:

Weng Xiaomeng

Johnson & Johnson Medical Devices China Corporate Communications and Public Affairs: 13911085482

Chen Jiaqi

Burson-Marsteller Public Relations, Limited
021 2287 6179