Varian starts construction of first Latin American plant in Jundiaí
In a project supported by Investe SP, the company will build a production unit, R&D center and training center; linear accelerators will supply the Brazilian Unified Health System
Investe São Paulo
Varian Medical Systems, an American manufacturer of medical devices, held on March 3 the groundbreaking ceremony of its first Latin America plant, in Jundiaí, State of São Paulo. The unit will produce linear accelerators, radiotherapy equipment that will be purchased by the Ministry of Health to be used in hospitals of the Brazilian Unified Health System (SUS), in addition to perform research and training activities.
Located in the industrial park of Multivias, this will be the 7th linear accelerator plant of the world, and the first one in Latin America, and its completion is scheduled for late 2017. Investe São Paulo, an investment promotion agency linked to Department of Economic Development, Science, Technology and Innovation, is advising the investment.
"Varian's project is within the scope of our program to attract more investments to the Health Care industry in the state. Projects like this foster a rich and complex chain, with quality jobs and technology development. And it’s perfectly natural that the companies choose to settle where the best universities and research centers are, that is, in the State of São Paulo," explains the president of the agency, Juan Quirós.
Investe SP has supported Varian in several aspects, such as guidance on tax incentives and environmental analysis of potential locations for the plant installation. The chosen site has 17,500 square meters, of which 4,700 square meters will make up the built-up area.
For the company, it was important that they installed its headquarters in a city in the region between Jundiaí and Campinas, in order to have easy access to international airports, highways and the Port of Santos. The proximity to cancer research and treatment centers also influenced the decision.
The decision to come to Brazil was made after Varian won a bidding process of the Ministry of Health in 2013. In the agreement, the Federal Government is responsible for investing R$ 500 million in the purchase of 80 linear accelerators from the company, which will be delivered by 2018, when the plant starts operating.
The American company, in turn, in addition to producing the devices, will perform the maintenance of the machines and transfer the technology to Brazilian research institutes. The company must also qualify suppliers to the production line, since the final product must have at least 40% of all parts, accessories and software products made in Brazil.
The installation of a training center has also been planned for the qualification of health professionals throughout Latin America who work with the devices. So far, this qualification had been done only in Las Vegas, United States.
"With this unit in Brazil, Varian is making a long-term investment so there is a greater knowledge dissemination and access to the technologies already in use in major world centers of cancer treatment," said Humberto Izidoro, general director of Varian in Brazil.
According to the Ministry of Health, the partnership with the company is part of the technological compensation included in the SUS Radiotherapy Expansion Plan, released in 2012.
The agreement between the Ministry of Health and Varian will give more autonomy to Brazil in this strategic area, as both linear accelerators and their parts and software used in the country are currently imported. This ends up making the costs and prices of the devices constantly suffer with the currency fluctuations, making Brazil dependent on the external market.
During the event
The ceremony was opened by Christopher Toth, president of Varian Medical Systems in the Americas. He highlighted the company's intention of making Jundiaí Varian's hub in Latin America, also thanking Investe SP's support. "The Agency's support was very important so that we could find this wonderful and suitable site," he said.
Patrick Joda, vice-president and general manager of the company's oncologic systems, confirmed the installation of a research and development center also in Jundiaí. "The plant will be able to produce more than what has been agreed with the Ministry of Health," he said.
"It is a privilege to receive a company of this magnitude in our city, further contributing to its development. We will collaborate and fully support Varian so it can succeed and help improve the health system in Brazil," said the mayor of Jundiaí, Pedro Bigardi.
The ceremony was also attended by the Investe SP’s General Manager of Investments, Wanius Ribeiro, the Consul General of the U.S. Consulate, Ricardo Zuninga, and the Deputy Director of the Department of Industrial Complex and Innovation in Health of the Ministry of Health, Joselito Pedrosa, among others authorities.
About Varian Medical Systems
The objective of Varian Medical Systems, Inc., a company based in Palo Alto, California, is to focus its energy on saving lives through the supply of X-ray components and high-tech equipment for the fight against cancer.
The company is the world's leading manufacturer of medical devices and software, in addition to offering comprehensive solutions in the radiotherapy and cancer treatment areas, providing management software to medical clinics specialized in radiotherapy and oncology clinics.
Varian also supplies X-ray components, including tubes, digital image detectors, cables and connectors, as well as image processing software for use in medical, industrial and also security areas. Varian Medical Systems currently has 7,400 employees distributed among our plants and sales and marketing offices in North America, Europe, China and other places in the world. For more information, visit www.varian.com.