LONDON Scientific Generics, the Cambridge based product development, technology licensing, and management consulting company, is setting up a joint venture with Automatic Manufacturing Limited (AML) to provide an integrated end-to-end research, development and manufacturing capability.
The joint venture, SGAI Tech Limited (SGAI), will be based in Hong Kong and will enable Scientific Generics and AML to make use of the combined benefits of Hong Kong's intellectual property laws and its proximity to China for the provision of a range of flexible, efficient and secure product development and manufacturing services to both new and existing clients.
Scientific Generics is investing HK$1.323million (£90,000) for 63% of the equity of the joint venture and is providing a loan facility of up to the same amount. A major client has already been secured.
The company says that with the continued increase in off-shore manufacturing and the subsequent trend towards off-shoring of development, it is important that the ability to deliver innovative products in a cost effective and low-risk manner is not lost.
Recently Hong Kong has started to position itself as a technology transfer gateway to the South China manufacturing region. SGAI will use Hong Kong’s growing knowledge based economy and high-tech infrastructure to link innovations from Cambridge through to production in China.
SGAI will focus on end–to-end delivery and provide clients with an integrated approach to product development and production, which should mitigate the inherent commercial and technical risks of off-shoring.
SGAI aims to provide a flexible method of charging for the cost of research and development, enabling companies with small R&D budgets but large purchasing power to specify and create their own innovative products.
All manufacturing work will utilise the ISO 9001, ISO 13485, cGMP, FDA and SFDA compliant, QS 9000 approved manufacturing facilities of AML. These facilities, based in Dongguan, China, with 330,000 square feet of production facilities and a 4,000 strong work force, will enable SGAI to provide from assembly design and proof-of-principle prototyping to testing, approval and full manufacture.
Simon Davey, CEO, Scientific Generics, said, “The creation of SGAI represents a turning-point for hi-tech design consultancies in the UK. Linking Cambridge directly with Hong Kong and China enables us to translate clients needs into product realisation.”
“Hong Kong is key to protecting intellectual property when developing products in China and its new research facilities, including the Hong Kong Science and Technology Park, make it an ideal place for mid-cap and start-up companies to leverage the value of China,” added Davey.
Dr Tim Moore, managing consultant at Scientific Generics, has been appointed Chief Executive Officer of SGAI.
Simon Davey (left), CEO Scientific Generics with John Mok, vice chairman, AML, AIL & director, SGAI.