Case: GE Healthcare forms an alliance to produce computerized tomography scanners

In the Russian government procurement the share of domestically produced goods in increasing, which puts importers in jeopardy. That is why so some western companies of the pharmaceutical industry have already launched production in Russia.

GE Healthcare, which has annual revenues of about 18 billion US dollars worldwide was one of the first companies that felt the need to localize production of medical equipment, particularly after corruption scandals at Russian hospitals, where imported CT scan equipment were purchased at prices that were several times higher than the market.

For that matter, GE has partnered with Medical Technologies Ltd (MTL), which is affiliated with the state-owned company “Rostechnologies”, 

 since 2010. GE and MTL arranged serial production of the Computerized Tomography scanner, Healthcare BrightSpeed Elite. This was the first serial computerized tomography scanner with 16 Slice technology that was manufactured in Russia.

GE Healthcare’s CEO in Russia and CIS has said that when making the decision to localize production, the company hoped for support from the Ministry of Health to directly or indirectly purchase its medical equipment, and a favorable response from the Ministry of Industry and Trade in determining the criteria for manufacturers’ localization and preferences for local producers. It is not difficult to understand the interest of GE in this project, if we consider the size of the CT scans market in Russia, which according to expert estimates, is around 200 million USD what is this in USD?. Moreover, GE is also ready to localize other kinds of equipment manufacturing with government support.