Exploring INTCO’s Factories in China and Vietnam

INTCO Medical is one of the leading medical device manufacturing companies in the world, with a concentration on quality, innovation, and solid material supply. Its strategic placement of manufacturing units in China and Vietnam helps the company meet the various demands from its clients worldwide.

The Foundation: INTCO Healthcare ‘s Zhenjiang Factory in China

How did the manufacturing footprint for INTCO Healthcare begin? INTCO Medical, starting its manufacturing journey in China, began operations with its Zhenjiang factory in Jiangsu province in 2003, which is the second plant following the one in Shanghai. This plant is much more than just a production unit, covering everything from research and development to final logistics. The Zhenjiang factory is the backbone of INTCO Healthcare’s production and delivery of a wide range of medical products at the highest quality.

What defines the Zhenjiang Factory?

The Zhenjiang factory is a showpiece of efficiency and quality within INTCO, being a vital component of its global manufacturing presence .

Extensive Physical Space

The factory is located in Zhenjiang and sprawls over 47.8 acres of land, equivalent to 27 football fields. The large space houses multiple high-volume production lines that can produce a wide range of physiotherapy care products.

Capabilities: Full Range of Production

Since the factory opened, the Zhenjiang plant has started to specialize in hot and cold compress products. It covers all stages of production, from its beginning in R&D to marketing and logistics.

Efficiency Emphasis

The Zhenjiang plant applies 5S and TPM management to reduce downtime, improve production efficiency, enhance product quality, and lower production costs. This includes practicing Lean Manufacturing in ensuring this facility runs at peak efficiency.

Integration of Advanced Technology

Equipped with advanced automatic production lines, such as an automated hand sanitizer line, which has an output of up to 4,000 bottles per hour, this factory also includes an automated ice pack production line where carousel systems seal and unload the packed materials without requiring much manpower.

Quality and Safety Standards

The facility has a Class 100,000 cleanroom for hand sanitizer production, maintaining the required air quality. Besides, a ten-thousand-grade quality testing room provides a controlled environment to ensure that product testing is not affected by external factors.

The Strategic Expansion: INTCO’s Vietnam Factory in Quang Ninh

Why Vietnam for its expansion? INTCO Medical extended the reach of its production capacity by setting up a new factory in Quang Ninh, Vietnam, in 2020. It was developed for the express purpose of making more robust and sustainable supply chains by capitalizing on competitive benefits presented by the country. Quang Ninh Factory soon has become part of INTCO’s main production unit as far as this strategy is concerned.

What Makes the Vietnam Factory a Strategic Asset?

The manufacturing base in Vietnam epitomizes the strategic direction that INTCO follows in its productions: cost-effective and correctly located.

Geographical Advantages

Geographically, the factory is strategically situated in Quang Ninh, only 30 minutes away from Hai Phong Port. This helps a lot with logistics in exporting the goods. This location ensures prompt deliveries and effective supply chain management.

Cost-Effective Production

In fact, this factory is considered better for customers looking for economical manufacturing services due to the lower cost of labor, land, and supply chain in Vietnam. For this reason, INTCO is able to provide products at internationally competitive prices.

High Volume Production

Although smaller than the Zhenjiang facility at 9.88 acres, the Vietnam factory has a high production capacity, currently producing approximately 5.2 million ice packs per month. This output demonstrates the factory’s capacity to efficiently meet large-scale market demands.

Diverse Product Portfolio

The factory produces instant ice packs, instant hot packs, hot-cold pack reusable, boxes of ice to cool mates, amongst an assortment of cold and hot therapy products produced in the company, which aids Intco into various market demands.

Future Growth Plans

INTCO will expand the production lines of the factory in Vietnam to include women’s care products and infant heel warmer items. This will expand the product line and further strengthen the position of INTCO in these two critical healthcare areas.

Global Marketing Strategy

The international marketing strategy followed by INTCO includes overseas centers in the United States, Germany, Japan, Vietnam, and Malaysia. This allows for easy customer relationships across various regions and provides convenient warehousing and after-sales service.

Why Vietnam? The Broader Context

Why does Vietnam become a strong alternative to INTCO Healthcare as a manufacturing hub? INTCO’s decision to expand into Vietnam reflects broader economic and geopolitical trends. Several factors have contributed to Vietnam’s emergence as a significant manufacturing hub in Southeast Asia, including:

Economic Factors

Lower Production Costs:

The labor cost is much lower than in China, making it an extremely lucrative country for manufacturing, with this being one of the main cost drivers for companies’ operational expenses.

Favorable Trade Environment:

Vietnam has established numerous free trade agreements with major economies; these reduce tariffs and facilitate international trade, aiding companies like INTCO in exporting a great deal of the products produced.

Government Support:

The government of Vietnam also actively promotes FDI through supportive policies such as tax incentives. With the help of such policies and favorable atmosphere, the country encourages establishment and expansion in businesses.

Supply Chain Diversification:

In the backdrop of furthering trade disputes, there arises a need to take the dependency on one single country lower in companies. At this juncture, Vietnam comes up as a secure and dependable alternative for manufacturing from China.

Regional Stability:

Vietnam offers political stability in the Southeast Asia region, hence is a haven for manufacturing investment. This they do to provide a haven of operational security for companies desiring long-term existence.

Strategic Location:

Its geographical location, especially its proximity to major shipping routes, ensures that it can easily export its products to the global market. This strategic location enhances supply chain efficiency.

Industry Trends

Growing Healthcare Sector:

The rapidly growing middle-class and increased healthcare spending have made the healthcare sector grow rapidly in Vietnam. This offers immense opportunities for companies like INTCO involved in medical supplies and devices.

Technological Advancements:

The Vietnamese government is increasingly focused on modernizing its healthcare infrastructure and encouraging the adoption of new technologies. This makes a big demand for high-quality medical devices that puts INTCO in a well-positioned area to witness growth.

Increased Demand for Medical Consumables:

This no doubt is a good omen for INTCO, given the ever-growing demand for medical consumables following the COVID-19 pandemic. The company has been producing basic medical consumables such as hot and cold packs.

Synergies: How China and Vietnam Factories Work Together

How do the China factory and the Vietnam factory complement each other? INTCO’s facilities, both in China and Vietnam, work together for a strong and flexible supply chain. The extended experience of the Zhenjiang factory in the manufacturing of hot/cold compress products is complemented by high-volume production of key items from the factory in Vietnam. This setup enables INTCO to balance quality with cost-effectiveness.

Flexible Manufacturing Capacity

INTCO’s flexible manufacturing operations provide the firm with the ability to respond to market demands swiftly. This flexibility is an important contributor in the dynamic healthcare sector.

Fast Delivery Networks

The strategic location of both factories, coupled with effective logistical operations, ensures timely product delivery to customers worldwide.

Cost-Efficient Operations

By transferring operational lines to Vietnam, INTCO will leverage lower costs for its operations and enable the sale of its products at more competitive prices. Cost advantage plays an important role in the global market.

Wide Reach Globally

Facilities in China and Vietnam have helped INTCO reach such a wide global market, including more than 50 countries.

Conclusion: A Healthy Global Manufacturing Network

INTCO Medical factories in Zhenjiang, China, and Quang Ninh, Vietnam, are key elements of the Company’s global manufacturing strategy. The perfect combination of advanced technology, location advantage, and high commitment to quality enables INTCO to meet the different requirements of customers in every part of the world.

The Vietnam facility, given its potential for high output and cost efficiency, has the full prospect for further expansion in depth, which will contribute much to solidifying INTCO’s position as one of the leading healthcare manufacturing companies. As INTCO continues to grow and innovate, its global manufacturing network will doubtless remain central to its success and its contributions to global healthcare.