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Shimadzu Establishes R&D Division in China

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Shimadzu on Tuesday announced the creation of an R&D division for analytical and measurement instruments at its Shanghai subsidiary.

The new division at Shimadzu International Trading will strengthen Shimadzu's marketing capabilities in China and allow for the development of products targeting mid-range markets, which are expected to grow significantly in the coming years, the company said.

In a statement, Shimadzu said that non-Chinese manufacturers have more than half of the market in China for analytical and measurement instruments, which are used for R&D and quality control processes for drug manufacturing, food testing, and environmental testing applications.

Foreign manufacturers are the dominant players in the high-end/high-performance to mid-level instrument market, while Chinese firms are the main players in the low-end and some mid-level instrument markets. As the industrial fields continue to develop in China, the market for mid-level instruments has also grown, and domestic instrument manufacturers have moved to capture a share of that market by improving the performance and quality of their products, Shimadzu said.

"Therefore, we intend to expand our business in China by building our marketing, R&D, and production capabilities targeted to this mid-level instrument segment," the company said. "This will enable us to introduce even more competitive new products to the marketplace in a timely manner."

Shimadzu plans to develop new models of its core product line, including liquid chromatographs, gas chromatographs, spectroscopy platforms, and environmental measurement systems. The development of other products will follow.

Shimadzu's annual sales of such products totaled about Y140 million ($1.7 million) in 2010. The company plans to more than double that to Y300 million by fiscal 2015 by increasing the proportion of products developed at the Shanghai R&D center to 20 percent and tailoring products to the needs of the Chinese market, Shimadzu said.

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