SINGAPORE (THE BUSINESS TIMES) - Personal protective equipment (PPE) maker Medtecs International has entered into a joint venture (JV) with ACO International to build a fully vertically integrated product development, manufacturing, sales and distribution platform.
ACO is a special purpose vehicle incorporated in 2015 by a group of professionals with extensive knowledge in the medical product supply chain and deep relationships across the US healthcare market, Medtecs said in a bourse filing on Tuesday (March 2).
ACO will assist in site selection for the construction of a PPE production facility. Upon Medtecs' approval of the proposal site, both parties will assist JV company Resilient Medical with the purchase and development of the site, as well as all matters in relation. ACO and Medtecs will have an equal stake in Resilient Medical.
Medtecs' board believes the JV will allow the group to expand its manufacturing capabilities and product offerings and ultimately, expand its revenue streams.
The move is also in line with Medtecs' strategy to leverage ACO's business network, resources and competitive strengths to capture increased market demand for PPE products worldwide and specifically, the US market, it said.
ACO has connections to "a significant network" of health systems, hospitals and healthcare-related providers and organisations. Its product development, sales and distribution capabilities will provide the group an opportunity for immediate access to the US market, Medtecs said.
Shares of Catalist-listed Medtecs closed at 95.5 cents on Tuesday, down 4.5 cents or 4.5 per cent.