What's Happening?
Convatec, a leading provider of medical devices for chronic conditions, has announced plans to invest over $1 billion in research and development facilities in the United States and the United Kingdom over the next decade. The company has earmarked $600 million for U.S. activities, including a significant expansion of its Boston facility, which will increase capacity by 50%. In the U.K., Convatec plans to relocate its R&D operations from Wales to Manchester, investing $650 million in the process. This move is part of Convatec's strategy to enhance its lab, testing, and collaboration spaces, reflecting its commitment to innovation in its largest commercial market.
Why It's Important?
Convatec's investment underscores the company's confidence in the U.S. and U.K. as key hubs for medical research and development. By expanding its facilities, Convatec aims to bolster its capacity for innovation, particularly in infusion care, which has been a significant growth driver. The investment is expected to create jobs and strengthen the company's market position, particularly in North America, which accounted for 56% of its sales in the first half of 2025. The move to Manchester also highlights the strategic importance of proximity to leading universities and research institutions, which can foster collaboration and accelerate technological advancements.
What's Next?
Convatec plans to complete the Boston expansion by the end of 2025, enhancing its capabilities in lab and testing spaces. In the U.K., the Manchester facility is scheduled to open in 2027, with the company expecting to transfer around 200 employees from Deeside. Convatec's continued investment is contingent on government support, reflecting the importance of favorable policy and legislative environments for its operations. The company will maintain its manufacturing presence in Deeside, employing around 400 people, while focusing on R&D in Manchester.
