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SEPTEMBER 2004

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MEDICAL DEVICES



Expansion Finds Merit
On Both Sides of Atlantic

    Ireland continues to build on its strong medical device manufacturing base. Home to operations of 15 of the world's top 25 medical technology companies, the relatively small nation employs more than 22,000 at 110 companies with annual sales of more than 4 billion euros (US$4.9 billion). Products made in Ireland include disposable plastic and wound care products, precision metal implants, orthopedic implants and stents.
     
Merit Medical is making two major facility investments: in Galway, Ireland (above), and in its hometown of Salt Lake City.
Firms expanding in Ireland cite the availability of technical and managerial talent, and a deep-rooted sub-contract and services infrastructure.
      Merit Medical's initial foray into Ireland 10 years ago was a matter of getting closer to customers. The move proved successful, and now the Salt Lake City­based company is expanding its facility, Merit Medical Ireland Ltd., at Parkmore Business Park West in Galway. The move involves an investment of 9.3 million euros ($11.3 million) and will create more than 230 jobs. Merit's products include non-invasive inflation devices used in angioplasty cardiology procedures.
      "We determined that Europe would be the second most important medical market in the world and that we could operate there like we could in the U.S.," says Kent Stanger, Merit's CFO. "We looked at the Netherlands, Portugal, the U.K. and even France."
      Stanger says Ireland's many advantages start with its people, which he calls Merit's main consideration.
      "Ireland has young, well-educated, friendly people who wanted to work," Stanger says. "At that time, it had 17 percent unemployment. We could also hire managers who had experience working with U.S. companies."
      While unemployment has dropped as Ireland's economy has improved, Stanger says it remains a good environment for the medical device industry.
      "They offer some sweeteners, the tax rate is attractive and the capital grants they offer are a great assistance, as are the training and research and development grants."
      Meanwhile, Merit is also expanding its 32-acre (12.96-hectare) Utah campus with a 180,000-sq.-ft. (16,722-sq.-m.) project, doubling the site's manufacturing capacity. Merit says the expansion, which will house larger injection molding and electronics capabilities, will create 300-500 jobs over the next several years.
      A larger U.S. firm, Indianapolis-based Guidant, plans to create up to 1,000 jobs as it expands its Clonmel, Ireland, facility over the next several years. Guidant, a manufacturer of devices for use in vascular intervention, cardiac rhythm management and cardiac and vascular surgery, says the expansion is a result of the company entering the market for higher value, next generation stents. Guidant, which already employs more than 1,000 at the site, will break ground for a 125,000-sq.-ft. (11,600-sq.-m.) building in 2005.
      Also expanding in Ireland is Contech Medical, which plans to add 80 jobs at its facility in Galway. Contech manufactures guidewires used for catheter insertion during cardiovascular procedures.


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