Aptar has agreed to acquire 80% of the equity interests of Weihai Hengyu Medical Products Co., Ltd, a Chinese manufacturer of elastomeric and plastic components used in injectable drug delivery.
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This acquisition supports Aptar’s strategic priority to strengthen capabilities in high-growth economies such as China, and enhances the company’s ability to respond to changing local market needs, which include regional manufacturing, a well-integrated supply chain and close proximity to customers and their patients. By adding local manufacturing capacity, this acquisition positions Aptar to capitalise on the growth potential in the Asian region, while further strengthening the company’s ability to serve local and global customers in the injectable drug market with best-in-class products and services, competitive lead times and technical support, all while leveraging Aptar’s global network.
Located in Weihai, a coastal city in Shandong Province of eastern China, Hengyu designs and manufacturers elastomeric and plastic components used in delivering injectable drugs. Hengyu was founded in 1998 and has approximately 150 employees at its facility in Weihai.
Under the terms of the agreement, Aptar will have the option to acquire the remaining 20% of the equity of Hengyu upon the fifth anniversary of the closing of the initial majority equity investment. The transaction is expected to close by the end of the third quarter of 2021.