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Agfa to grow with China
By Liu Baijia (China Daily)
Updated: 2004-09-09 10:11

Belgian firm Agfa aims to achieve an annual growth rate of more than 20 per cent in the coming years for its medical business in China.

Herman Raats, general manager of North Asia for Agfa's healthcare business, said in an interview in Beijing he expects his unit will exceed the growth rate of China's investment in healthcare.

The Chinese Government said previously the investment into the health and medical industry will grow at an average of 20 per cent a year in coming years.

"The growth is in Asia and the locomotive is China," said Raats.

Agfa already moved some functions of its Asia Pacific headquarters from Hong Kong to Shanghai to better react to the market with Raats also deciding to base himself in Shanghai.

The Asia-Pacific business contributes 150 million to 200 million euros (US$180-240 million), about 10 per cent to Agfa's healthcare unit's total every year with revenues from the China market, about 40 per cent of the total in the region.

Raats believes Chinese hospitals will use more digital imaging systems which he hopes will become a big opportunity for Agfa.

The imaging-focused company has developed a photo acquisition and communication system (PACS), believed to be able to store and transmit imaging of patients' medical conditions on a computer-based network for a much longer time than traditional films.

It is said that more than 90 per cent of imaging systems in Chinese hospitals are based on analog imaging, but Raats believes there will be substantial change from analog to digital in the next five years.

Agfa co-sponsored a digital hospital forum with the Chinese Hospital Association in Beijing, to promote the concept of digital imaging. It is the first of such activities in China by Agfa. Raats said his company will hold more events to share its expertise with Chinese healthcare officials and hospital managers.

"At this moment, China is developing digital systems in hospitals and we want to be the first in the market."

To tap the potentials in the market, Raats said his company will increase its employees in China from 70 to 100 in the next year.

Agfa will consider setting up a research and development centre in Shanghai, likely to open next year.

"If we want to provide services and solutions to local hospitals, we must consider and meet their needs and that is why we must set up a development organization in China," said Raats.

In the manufacturing sector, Agfa is also thinking about building a sourcing centre to procure equipment from local manufactures.

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