UPS Officially Opens Hangzhou Healthcare Facility As Part Of Global Expansion

UPS Press Release:

Hangzhou, China, May 30, 2013

Brings Best Practices, Industry-leading Technologies, Innovative Solutions and Expertise to Customers in China

UPS officially opened its new healthcare facility in Hangzhou, Zhejiang Province, China, a move that represents a significant expansion of its Asia healthcare distribution network. The state-of-the-art facility has industry-leading technology to maintain product safety and integrity and is designed to offer seamless, global solutions to healthcare companies looking to expand into, transport within, and export from China.

China recently was voted the market with the most expansion opportunities by healthcare industry executives who were surveyed for UPS's fifth annual "Pain in the (Supply) Chain"study. The global survey of senior executives provides insights into issues and opportunities in the industry.

"China represents one of the most important markets for UPS and our customers," said Jim Barber, UPS International President. "To capture this growth of consumer demand in healthcare, as well as increase presence in China, we are investing in bringing the best-in-class solutions to our customers."

UPS partnered closely with local governments to develop information technologies crucial to product integrity, safety and security. Additionally, all UPS healthcare customers have access to its global IT platform, which provides product visibility during the entire supply chain journey.

The high-tech Hangzhou facility consists of 22,000 square meters of dedicated healthcare space, and is designed to meet the specific storage and distribution needs of pharmaceutical companies. Staffed by a dedicated on-site Quality Assurance team and boasting a fully-automated product tracking system, the Hangzhou facility provides innovative and customizable solutions to meet specific client needs.

With this facility, UPS aims to introduce a new and efficient business model into the Chinese market. This model is designed to reduce costs in the supply chain, negating the need for healthcare companies to build and invest in their own distribution warehouses.

"With many healthcare companies demanding rigorous supply chain solutions in China, we are seeing increasing opportunities," said Richard Loi, president of UPS China. "The UPS Hangzhou facility, along with our existing Shanghai medical device facility, will speed products to key markets within China, and underscores UPS's commitment to strengthening our China network."

Joining UPS at the opening ceremony is MSD, a global healthcare leader that is known as Merck in the United States and Canada. MSD, an innovator in healthcare, is the first company in the UPS Hangzhou Healthcare Facility.

"Many global companies are establishing a presence in Hangzhou and we are pleased to have worked with UPS to raise the standards of healthcare in China," said Zhao Liming, vice governor of Xiaoshan District. "The logistics infrastructure and expertise they bring certainly helps strengthen Hangzhou's position as a major healthcare transportation hub."

A Global Healthcare Approach

Earlier this month, UPS was awarded the International Standardization Organization (ISO) 13485:2003 and ISO 9001:2008 certifications recognizing its quality management system across its global healthcare logistics network. The ISO sets global specifications across industries so they are more effective and efficient. This is beneficial in emerging markets, with a growing healthcare industry, to ensure quality management best practice."

"Our ISO certification substantiates UPS's commitment to quality on a global scale," said Craig Foster, senior vice president, supply chain and healthcare logistics, UPS Asia Pacific Region. "Our dedicated healthcare facilities in the APAC region enable comprehensive and compliant services to customers in the pharmaceutical, biotech and medical device industries."

The opening of the Hangzhou facility is part of global healthcare expansion strategy. UPS opened its first Asia healthcare facility in Singapore in 2011, and followed rapidly with the opening of three additional facilities in the third quarter of 2012, located in Hangzhou and Shanghai, China, and Sydney, Australia. This year, UPS announced its intent to acquire a European healthcare company, and expanded five existing North American facilities.

UPS delivers value to healthcare companies through a broad portfolio of specialized freight and small package transportation and distribution services in Asia and around the world. UPS's global healthcare network is made up of 41 dedicated healthcare facilities encompassing 595,000 square meters and offers services such as temperature-sensitive handling, geographic-specific regulatory compliance, monitoring and security, kitting and labeling, as well as order management and accounts receivable. UPS helps healthcare manufacturers meet stringent and often complex regulatory requirements, provides flexibility for a changing business environment and reliably serves an increasingly global customer base.

For more information on UPS's healthcare services, visit www.ups.com/healthcarelogistics.