Thursday, November 18, 2021

“Sri Lankan location cuts down on lead times”

Flexicare Chairman Dr Ghassem Poormand noted that Sri Lanka was one of the best locations in the world to set up a manufacturing base due to the short lead times to key export markets. Poormand noted that smaller-scale manufacturers looking to venture overseas are better placed to interface with Sri Lankan officials where their problems and concerns would be given greater hearing than they would in other more globally recognized centres of manufacturing outsourcing.

Dr Poormand noted that he was not afraid to set up the first medical device manufacturing facility in the country due to the confidence he placed in Sri Lankan officials to help overcome regulatory burdens.Dr Poormand noted that Flexicare aims to have the ‘highest recognized international standards alongside labelling that note that the products were made in Sri Lanka’.

Flexicare’s Bandaragama facility is located in close proximity to the Southern Expressway and is built over a 5-acre land plot. Dr Poormand noted that this facility was just the initial phase of plans to bring in a much larger scope of manufacturing to the country.

Dr Poormand said Sri Lanka’s export zones were on par with other international centres in terms of taxation and customs procedure which was vital to allow the location of a manufacturing base. He noted that certification for the medical devices could be obtained through international agencies that verified the standards by having agents travel internationally. The firm plans to exploit Sri Lanka’s proximity and relations to export into the broader South Asian market.

The initial plant has cost around US $ 15 million to establish with a similar sum earmarked for the second phase of expansion. The plant is vertically integrated and produces much required single-use medical devices that have constant demand due to their value in reducing infection in invasive surgeries.

Dr Poormand was very happy that though COVID-19 caused some disruptions the plant was now complete. Flexicare Managing Director Hash Poormand noted that the venture was already having a catalytic impact on the surrounding economy. The plant has already onboarded over 150 staff with that figure expected to grow to over 600 in the very short term. Over the second phase of expansion, the company would end up employing over 2,000 employees in the area. The plant is also going to have significant impacts in creating jobs indirectly.

Large inputs including all packaging for the plant are procured domestically and this helps create demand in the local markets. Poormand described the venture as having a long term outlook and noted that Flexicare was committed to the region which he said could become much more vibrant.

The plant is meticulously managed so as to maintain a sterile environment necessary for the manufacture of medical devices.

Flexicare has been operational in Sri Lanka for over 20 years through their local partner Technomedics. The plant was given full clearance from all levels of government and regulatory bodies with many key officials participating at the launch event.

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