By Vera Dvorakova and Jesus Calero
Nov 3 (Reuters) – Coloplast has reduced its commercial operations in China by 80 people and does not expect its business there to stabilize until 2027/28, the Danish medical equipment maker told Reuters on Tuesday.
Forming around 4% of group sales, China has become a drag on Coloplast’s largest division, ostomy care, as domestic competition and weak consumer confidence weigh on demand for ostomy bags that consumers pay out of pocket.
• Coloplast cut inventories, simplified its Chinese organisation and installed new leadership while adjusting to difficult market conditions, chief executive Gavin Wood said
• The staff reductions affected only Coloplast’s commercial organisation, leaving its 750-person production site in Zhuhai unaffected
• Chinese peer Cofoe Medical Technology said in April it had managed to take over local market share formerly occupied by overseas brands
• The changes are part of a broader programme to free up 500 million Danish crowns ($75 million) through organisational changes, adjustments to the company’s US Biologics business and procurement savings
($1 = 6.6779 Danish crowns)
(Reporting by Jesus Calero and Vera Dvorakova in Gdansk; Editing by Matt Scuffham)
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