Trauson, established in 1986, is one of the pioneering enterprises in China¡¯s orthopaedic industry, and the largest manufacturer of trauma products and one of the top manufacturers of spine products in China by market share. In March 2013, Trauson joined Stryker Corporation.
We adopt a dual-brand strategy: Trauson and Orthmed, with Trauson as the primary brand and Orthmed the secondary but faster growing ¡°fighting¡± brand. Both brands compete in China¡¯s trauma and spine markets and enjoy excellent reputations for quality and trustworthiness. This dual-brand approach gives us flexibility in winning tenders and leverage over major distributors. We currently employ 1200 people, design and produce our products in two manufacturing facilities ¨C Trauson (China) Medical Instrument Company Limited and Changzhou Orthmed Medical Devices Company Limited, sell and distribute our products and services through a nationwide distribution network of more than 460 distributors in over 3,500 hospitals. In addition to our main campuses in Changzhou, we have two regional sales offices in Shanghai (Shanghai Gongping Trading Company) and Guangzhou (South China and Southwest China Branch).
Emerging markets are the main engine for global growth and China is the vital market so every corporation wants to gain a foothold and dominate. Trauson still remains the largest domestic producer of trauma products and one of the top three domestic producers of spine products in China by market share. Trauson¡¯s possession of elite research team and product line, its nationwide distribution network and the decade-long cooperation with Stryker make it join Stryker Corporation. Under the principal of ¡°One Country, Two Systems¡±, Trauson¡¯s integration and risk control are under its way as planned. To strengthen risk control, Trauson established compliance department and dealer management department to consolidate current distribution network, minimize talent loss, efficiently solve the historical quality problem, enhance quality control system, and strengthen communication with government to build better public relation and image. In addition, Stryker headquarter appointed accountable General Manager to take full charge of the implementation of integration and support General Manager¡¯s work in every possible way. With the exception of naming Trauson¡¯s General Manager, Stryker kept the original management team almost intact, and placed key personnel to key positions, transforming Trauson¡¯s management to be an international and professional team. Trauson also maintained high-efficient and low-cost structure and operation model through the enhancement of productivity.
Since the start of two-year integration, Trauson management and employees continued to learn and listen and exceeded both the sales target and profit margin target. It also maintained the cohesiveness of teams which set lowest record of turnover rate, and won Stryker¡¯s maximum support and trust and reduced the unnecessary interference by not compromising on principals. Besides, Trauson¡¯s testing center has passed governmental agency¡¯s inspection and became the first and only corporation to receive CNAS accreditation. At the end of 2013, Trauson was bestowed the honor of ¡°Most Trustworthy Brand In Quality¡± by China Quality Association for Pharmaceuticals, making Trauson the first and only orthopedic corporation to win that title. In addition, both Trauson and Orthmed won the honorary title of ¡°National High-Tech Enterprise¡±. In Dec. 2014, Jiangsu Food and Drug Administration and Trauson signed an agreement for JSFDA Education Training Center, which manifested Trauson¡¯s passion to shoulder more social responsibility as a domestic leading orthopedic products manufacturer. Trauson also hopes the training program would be a two-way platform for communication and learning and assist JSFDA to drive the healthy and fast development of medical instrument in Jiangsu province. In March 2015, Trauson and EMBA Program of Antal College of Economics and Management of Shanghai Jiao Tong University jointly hosted Summit on Development Trend and Change in Medical Device Industry and EMBA of Shanghai Jiao Tong University Visiting Alumni¡¯s Corporation¡ªTrauson Medical, which not only exhibited Trauson¡¯s consistent focus on talent but also its leading position and influence in medical device industry.
As we are striving to build ¡°Trauson¡± as the most trusted company to do business with and the NO.1 brand in the value segment of the global orthopedic industry, we have focused on the following Imperatives: Customers as Focus, Innovation as Drive, Quality as Life, Cost Reduction as Core Competitive Advantage, and People as Foundation. A cross-department and clear division of responsibility ¡°Fast Response Team¡± has been established. Under the ¡°Chief Engineer Office¡±, a ¡°High-Tech Center¡± is founded, which is to develop Trauson¡¯s design and production platform and utilize the leading intellectual patents, technology and cost-reduction model to develop new materials for new generation product, signifying Trauson¡¯s transformation from a quick follower to be a leader in technological innovation and a magnate attracting and facilitating close cooperation between surgeons, hospitals, and research institutes. In the meantime, Trauson introduced domestic and international creative talents to conduct research on Trauson Orthopedic Modeling & Analytics, 3D Printing Research Center and new material and strengthen their strategic cooperation. Besides, Advanced Engineering Center was established to facilitate the fusion on quality and the marketing of new products between R&D and operation. In addition, the founding of ¡°3D Printing Research Center¡± on Sept. 25 2014 is the hallmark of Trauson¡¯s transformation from ¡°Made In China¡± to ¡°Created In China¡±, with the following birth of 3D orthopedic digital design platform. The aforementioned strategic moves render Trauson to firmly believe and ready itself for the glorious goal of being a leader in the value segment of global orthopedic.
In the long run, Trauson would make acquisitions and mergers outside the orthopedic industry to expand its global reach in value segment. The road ahead is full of challenges but so are the enormous opportunities. In light of Trauson¡¯s successful integration into Stryker, we firmly believe Trauson would win the trust and support of its employees and stakeholders to achieve continuous growth and the global expansion of value segment.
In future, Trauson would accelerate its global expansion, enhancing its competitiveness in spine industry and its market share. It also aims to enter into joint industry, the fast-growing premium industry of orthopedics and seizes opportunities to gain a secure foothold in other raid-growing industries through acquisition.
Last but not least, let¡¯s win the right way and believe in Truason¡¯s glorious future.