Analytik Jena starts production of analytical instruments in China

20-06-2006: Analytik Jena AG gave the go-ahead for the incorporation of the first large instrument to be made entirely in China for the examination of water quality in pharmaceuticals, the environment and the semiconductor industry. The Group is now deploying a "TOC" analytical system for industrial routine applications, which was developed using German technological expertise, for production at its Chinese subsidiary in Shanghai. The so-called "UVTOC" analyses the pollution of primarily drinking or industrial water with organic contamination (TOC = parameter for total organic carbon) and this focuses on a problem that is becoming more important, particularly in China - the ever-shrinking resource that is water.

"By outsourcing parts of our production to Asia, we can directly participate in a market that enjoys above-average growth and exploit China's advantageous cost structures. At the same time, this represents an important operational activity for us, as we can strongly counteract the price pressure exerted by the dollar," explains Klaus Berka, CEO of Analytik Jena AG.

The first TOC instruments were produced and put into operation in Shanghai at the start of June. Some 20 instruments are expected to be sold within the same year. Distribution of the instrument systems produced in China is initially limited to the local market, after which the entire Asian market is to be supplied from China. In the medium term, the intention is to market the products worldwide. The company's own production sites in Germany remain unaffected by this decision, as they will continue to produce high-tech instruments.

The Group is aiming at annual market sales of over 100 instruments in the Asian region. The short to medium term objective of Analytik Jena is to achieve an average market share of 10%.

While Analytik Jena is procuring the mechanical assemblies and casings to produce the systems in China mainly from the local market, important high-tech components will continue to be imported in advance from Germany.