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Manufacturers Continue to Expand in China
Device and drug companies aren't letting publicity over the safety of manufacturing facilities in China get in the way of their presence in the country. For years now, manufacturers have cited lower operation costs and a presence in the Asian market as reasons for either establishing or relocating sites to China. The Boston Globe reports that companies like Covidien Ltd. and Inverness Medical Innovations Inc. are expanding their production there.
March 14, 2008
1 Min Read
Covidien is tripling its workforce at the site, and Inverness Medical is relocating a plant from England to China. However, a lawyer quoted in the article says it's easier to win damages against a company that is sells defective products manufactured in China than in the United States. The Baltimore attorney, Ronald Miller of Miller & Zois LLC, also notes that jurors might feel that companies are cutting costs by making products in China, while sacrificing the safety. Despite the negative press given to sites in China, the majority of device companies probably employ the same strict quality controls there that they use in the United States and overseas. As presence in Asia continues to accelerate at a very rapid pace, companies will need to make sure that they really stick to strong quality standards, even if it means spending a bit more money.
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