CHINA- Illumina has established its first manufacturing facility in China, allowing it to produce equipment and supplies for genome sequencing for the domestic market.
Despite a lack of adequate local manufacturing facilities, the leader in genome sequencing has expanded in China.
The facility, which is in Shanghai, was built to meet the rapidly expanding demand for biotech products coming from the world’s largest market.
By constructing a production facility in Shanghai, Illumina has now filled that hole in its supply chain infrastructure.
The new plant, the third global production hub for the corporation after Singapore and the United States, would receive investments totaling 500 million yuan (US$78 million) over the next three to five years.
The first batch of products will be produced by Illumina by the end of the year, and during the next five years, all devices and supplies for gene sequencing will be produced locally.
The site’s debut was announced a few weeks after Illumina reached a US$325 million settlement in their legal dispute with BGI’s affiliates in China.
Illumina has increased sales in Greater China over the past few years with revenue increasing from US$185 million in the first half of 2019 to US$245 million in the corresponding period of 2022.
“Our new manufacturing site in China signifies Illumina’s commitment to the country’s life sciences and genetic industry,” said Li Qing, senior vice-president, and China general manager at Illumina.
“We see huge potential in the development of the life sciences and genetics industry here in China,” Li said.
“The new manufacturing capabilities allow us to better cater to domestic demand.”
Genetic sequencing, in Li’s perspective, might signal the start of an industry revolution.
He pointed out that because second-generation sequencing hadn’t been created when SARS first appeared in 2003, it took researchers five months to decode the disease.
Zhang Yongzhen, a Chinese scientist, used an Illumina sequencer to sequence the novel coronavirus’s genome overnight in early January 2020.
Sequencing has become increasingly important in the past two years for locating and monitoring COVID variations.
According to Li, since Illumina entered the Chinese market in 2005, it has grown to be the company’s second-largest market after the United States.
Illumina has increased sales in Greater China over the past few years with revenue increasing from US$185 million in the first half of 2019 to US$245 million in the corresponding period of 2022.
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