Siemens AG, a leading global producer of electrical engineering and electronics solutions, has opened an ultrasound medical systems plant in Gyeongju, North Gyeongsang Province.
The German industrial group held an opening ceremony on Tuesday (September 14) for the 3,570-square-meter facility.
Ultrasonic Technologies Ltd., a 51:49 joint venture between Siemens and Korean medical equipment maker Prosonic Co, will run the plant.
Siemens Ltd. Seoul, a Korean subsidiary of the German company, said that the factory is capable of producing probes at an annual capacity valued at more than $40 million.
Probes are the most essential component of ultrasound systems comprising 20 percent to 40 percent of the total equipment price. The high-end medical system converts sound to an imaging signal to assist in diagnosis.
The German company said the Ultrasonic Technologies factory is expected to lead worldwide production of ultrasound systems within the Siemens group because it is the only completely vertically integrated transducer production plant among the companys manufacturing facilities.
All products made by Ultrasonic Technologies will be exported to the Siemens Ultra Group located in Silicon Valley near San Jose, California, with initial sales of $20 million expected in 2004 and $40 million in 2005.
Siemens plans to double the number of its employees to 200 for production and research and development, while increasing the component localization rate from the current 40 percent to 100 percent to cut costs.
The ultrasound industry is an advanced high-tech industry, integrating electronic engineering, mechanical engineering, physics and medical studies, and has a world market value of $5 billion.
Siemens would like to contribute toward Korea becoming the world leader in the science and technology field with its skilled human resources and advanced technologies through active R&D investment and technology transfer, said Josef Winter, chief executive officer of Siemens Ltd. Seoul.
