Jiangsu Huadong Medical Device Industrial and Getein Biotech have signed an agreement to jointly manufacture and sell antigen test kits for Covid-19 and other in vitro diagnostics (IVD) products.

Under the strategic cooperation agreement, Meihua International Medical Technologies’ (MHUA) subsidiary Jiangsu Huadong will serve as a production, research and development centre for Getein Biotech exclusively in Northern Jiangsu Province.

Initially, the centre will manufacture Covid-19 antigen test kits. The companies aim to produce other future high-end IVD medical device products later.

Recently, MHUA completed the construction of a workshop that covers an area of more than 8,000m², with an extra commercial warehousing space of 15,000m².

The production base includes 52 new Covid-19 antigen test kit lines that are wholly automated.

To safeguard the manufacturing of the products, Jiangsu Huadong will hire more than 400 workers and 35 technology staff.

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With a Class III medical device production certification, the facility will be ready to begin production after 16 January.

MHUA CEO Xin Wang said: “We expect that the newly adjusted production lines will soon obtain relevant credentials for Class III medical device production and once manufacturing commences, we estimate the production capacity will reach three million kits per day.

“Based on current market prices, we anticipate that the new facility to produce a maximum of RMB150 million ($22m) worth of products per month (if calculated at peak capacity).”

Getein Biotech recently received China National Medical Products Administration approvals to produce, market and sell its products to provide rapid diagnostic tests to help the country’s residents contain the spread of Covid-19.