KONTAN.CO.ID - JAKARTA. Indonesian medical equipment distribution company PT Esa Medika Mandiri (ESA Group) has signed a Memorandum of Understanding (MoU) with Weigao International Holding Corporation Ptr. Ltd (Weigao Group) from China.

President Director of Esa Medika Mandiri, Surya Gunawan Widjaja, stated that ESA Group will form a joint venture with Weigao Group to establish a surgical thread factory in Indonesia that meets international standards. Weigao Group is a renowned medical equipment company from China. 

"Weigao is the owner of the Wego Sutures surgical thread brand, which is known to have excellent quality," Surya explained in a press release received by Kontan on Friday (1/3).

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ESA Group has been collaborating with Weigao Group since 2014. With a long history of cooperation, ESA Group and Weigao Group agreed to establish a surgical thread factory in Indonesia. 

The total investment required for the factory is US$ 3 million, excluding land and building investments. For the first phase, the investment made by both companies amounts to US$ 1.5 million, with a share composition of 55% owned by ESA Group and 45% held by Weigao Group. 

With this joint venture, ESA Group and Weigao Group are committed to producing medical equipment in Indonesia that meets international standards. In the future, ESA Group and Weigao Group will also add several new products related to medical equipment manufactured in Indonesia. The resulting products will be exported to several ASEAN countries.

"It can be assured that this joint venture will bring technology transfer to Indonesia," he said.

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Vivienne Zhang, Deputy General Manager of Weigao Group, explained that Weigao Group has known ESA Group for 10 years. At that time, ESA Group was still a distributor or agent of Weigo products. This MoU for the establishment of a joint venture will be the 10th-anniversary gift of collaboration between Weigao Group and ESA Group.

Currently, ESA Group has three medical equipment factories located in Solo, Cikarang, and the newest one in Cikupa. The newest ESA Group factory located in Cikupa, Tangerang has a land area of 5,000 square meters (m2).

"So now ESA Group is not just a distributor of Weigao Group. After the signing of the MOU, there will be a factory that will produce products from China but manufactured in Indonesia, which is certainly to advance Indonesia," revealed Vivienne Zhang.

Editor: Syamsul Azhar