UPS announced a significant expansion of its global healthcare distribution facility network in the Asia Pacific region with the opening of three new state-of-the-art facilities in Hangzhou, China, Shanghai, China, and Sydney, Australia. The new facilities bring the total number of UPS dedicated healthcare facilities around the globe to 36, encompassing more than one-half million square meters of space. They are part of UPS’s strategy to invest in its global healthcare network to meet the growing needs of its global healthcare customers.
Driven by trends of increased globalization and growing healthcare consumption in emerging markets, the new facilities, together with UPS’s existing healthcare facility in Singapore, which opened in 2011, serve both multinational and regional healthcare manufacturers’ distribution needs across the Asia Pacific region. The new facilities represent nearly 35,000 square meters of healthcare-compliant distribution space and are specially designed to meet the needs of pharmaceutical, biotech, and medical device companies.
“Asia is our fastest-growing market for healthcare and we are seeing increased activity in the region, especially in China, where a growing demand for acute and chronic care has driven the need for reliable, flexible, and compliant supply chains to serve a highly dynamic market,” says Bill Hook, vice president, global strategy, UPS Healthcare Logistics. “Healthcare is a major focus area for UPS, and we are committed to continuing investments in Asia and other parts of the world timed with—and often ahead of—market demand to support our clients’ growth strategies in key regions.”
Specifics of the new facilities include:
Hangzhou: Opened in the third quarter of this year, UPS's Hangzhou facility consists of 22,000 square meters of validated healthcare distribution space. The facility is designed to support the increasing number of pharmaceutical companies that are locating manufacturing operations in China.
Shanghai: Located within the Waigaoqiao Free Trade Zone, the recently opened 7,575 square-meter facility is designed to meet the needs of the medical device market. The facility provides critical access to one of the largest consumption markets for healthcare products. The close proximity of the Waigaoqiao Free Trade Zone to the UPS International Air Hub in Shanghai allows UPS to provide an integrated supply chain solution to the healthcare market. The UPS International Air Hub in Shanghai operates 82 flights per week and provides critical access for inbound shipments into China as well as outbound shipments around the world.
Sydney: Opened in the third quarter of this year, UPS’s Sydney facility is 5,388 square meters of dedicated healthcare distribution space. With many multinational as well as regional companies looking to set up distribution in Sydney to serve regional markets, UPS’s facility provides quick turn-around, including next-day delivery capabilities.
“The three new facilities, along with our existing Singapore facility, are strategically located across key, growing healthcare markets in Asia Pacific and are targeted to support our clients as they grow their business,” says Craig Foster, senior vice president, Supply Chain and Healthcare Logistics, UPS Asia Pacific Region. “UPS adopts a consistent approach in our global healthcare strategy and all of our facilities worldwide are built with the same exceptional standards of quality care that are compliant with the requirements of the local regulatory bodies.”