AJP Asia Intelligence Agency

Samsung Medison Invests 50 Billion Won to Expand Manufacturing Facility in Hongcheon


Samsung Medison is strengthening its production capabilities to target the global medical device market with the completion of a new ultrasound diagnostic equipment manufacturing facility in Hongcheon, Gangwon Province.

On November 13, Samsung Medison held a ceremony to mark the completion of the facility expansion at its Hongcheon site. Attendees included Gangwon Province Governor Woo Sang-ho, People Power Party lawmaker Yoo Sang-bum, Hongcheon County Mayor Shin Young-jae, representatives from key partner companies, and Samsung Medison CEO Yoo Gyu-tae along with employees.

Founded in 1985, Samsung Medison became a subsidiary of Samsung Electronics in 2011.

The new manufacturing facility, which spans 14,548 square meters (approximately 4,400 pyeong), represents the largest expansion since Samsung Medison was acquired, with an investment of 50 billion won.

The expansion was initiated in response to increasing demand for ultrasound diagnostic equipment and the growing sales of premium products. The new facility aims to enhance production capacity and streamline manufacturing processes to reliably meet global market demands.

The Hongcheon site is a key production hub for Samsung Medison's premium ultrasound diagnostic devices, including the 'R20' and 'HERA Z20.' It produces all export volumes for over 110 countries, accounting for more than 90% of Samsung Medison's revenue, thereby supporting its global operations.

With this expansion, Samsung Medison plans to double its production capacity for ultrasound diagnostic equipment and develop the Hongcheon site into a global core supply hub.

The company supplies ultrasound diagnostic devices produced at the Hongcheon plant worldwide, contributing to exports from the Gangwon region. Medical devices have ranked first among Gangwon's export items for ten consecutive years, with the province achieving approximately $810 million in annual medical device exports, placing it second among all provinces and cities in South Korea.

The new facility will feature production lines designed with consideration for process characteristics and logistics flow, incorporating smart processes and automation equipment to enhance production efficiency and quality competitiveness.

By optimizing the workflow from parts intake to assembly, inspection, and shipping, the facility will be able to respond flexibly to changes in demand while implementing thorough inspections at each production stage to achieve zero-defect quality standards.

The new manufacturing facility will also integrate Samsung Electronics' building management solution 'b.IoT' to centrally manage air conditioning systems and energy usage. This integration is expected to reduce reheat energy consumption by up to 33.6%. Additionally, the building energy management system (BEMS) will help cut air conditioning energy use by up to 15%.

High-efficiency temperature and humidity control equipment, which can reduce power consumption by up to 52% compared to existing facilities, will also be implemented to maintain a stable manufacturing environment while minimizing energy consumption and greenhouse gas emissions.

The expansion is also expected to strengthen manufacturing synergies with the Gumi plant in North Gyeongsang Province. Established in September 2012, the Gumi plant specializes in producing probes, a key component for generating and receiving ultrasound, and has increased its annual production capacity by approximately 17% through expanded production space and improved process layout.

Yoo Gyu-tae, head of Samsung Electronics' medical device division and CEO of Samsung Medison, stated, "This expansion of the Hongcheon plant is a significant turning point that will elevate Samsung Medison's manufacturing competitiveness in the global medical device market beyond just expanding production facilities. We will continue to contribute to healthcare professionals and patients worldwide with uncompromising quality and reliable equipment while leading technological innovation in the global medical device market."




* This article has been translated by AI.