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Portland Orthopaedics to receive first shipment of outsourced hip replacements Manufacturing at specialist US facility reduces costs by up to 75%
31 / 05 / 2007
Portland Orthopaedics Limited (ASX:PLD) is due to receive its first shipment of US factory produced Portland hip replacements. These Portland products will be sold in the US and Australia.
Portland has in the past months been retooling manufacturing operations at its Matraville site to boost stocks across a suite of joint replacement products by using large US based manufacturers to save up to 75 percent of raw material and manufacturing costs across the board.
The first products to be shipped to Portland are the neck side of the M-COR primary hip replacements. Two companies in Indiana and Michigan in the US have been contracted to manufacture Portland's cup products that connect with hip replacements.
These US facilities have high capacity production and an excellent record in quality production and reliability.
"Boosting production, dramatically lowering the cost of production overall and minimising expenditure on plant and inventory all result from Portland's decision to manufacture Portland's products in the US," said Mr David Sekel, managing director of Portland Orthopaedics.
"We have eliminated the supply constraints associated with rapid product expansion. Our domestic production facility was constrained in its ability to produce the full range of sizes for the increased product range and associated instruments. However, reliability of supply is vital in building sales".
Portland owns the intellectual property and the company's operations now emphasise development, sales and distribution. Portland's products are unique and strong loyalty by US surgeons to date gives us a solid and growing sales base.
Portland has in the past months been retooling manufacturing operations at its Matraville site to boost stocks across a suite of joint replacement products by using large US based manufacturers to save up to 75 percent of raw material and manufacturing costs across the board.
The first products to be shipped to Portland are the neck side of the M-COR primary hip replacements. Two companies in Indiana and Michigan in the US have been contracted to manufacture Portland's cup products that connect with hip replacements.
These US facilities have high capacity production and an excellent record in quality production and reliability.
"Boosting production, dramatically lowering the cost of production overall and minimising expenditure on plant and inventory all result from Portland's decision to manufacture Portland's products in the US," said Mr David Sekel, managing director of Portland Orthopaedics.
"We have eliminated the supply constraints associated with rapid product expansion. Our domestic production facility was constrained in its ability to produce the full range of sizes for the increased product range and associated instruments. However, reliability of supply is vital in building sales".
Portland owns the intellectual property and the company's operations now emphasise development, sales and distribution. Portland's products are unique and strong loyalty by US surgeons to date gives us a solid and growing sales base.