The Board of Directors of Vicplas International Ltd. announced that a wholly owned subsidiary of the Company in the medical devices segment of the Group has signed a lease on 17 October 2023 with Parques American Industries, S.A. De C.V., for a new 68,000 square foot purpose built facility in Juarez, Mexico for the establishment of its fifth medical devices contract manufacturing plant. The facility is located at Av.Santiago Troncoso #231, Lote Bravo, Juarez, Chihuahua, Mexico. The lease term is for seven years with the lessee entitled to extend the lease term for two new and consecutive extensions of five years each.

Currently, MDS has two major manufacturing facilities in China (one of which was extended in 2022 to increase capacity by some 70,000 square feet), one in Singapore as well as a manufacturing facility in the United Kingdom. As part of its global business growth strategy, MDS seeks to widen and deepen both the range of medical device products manufactured and its medical devices manufacturing capabilities in order to provide greater flexibility and choice for customers in deciding where they want their products manufactured. Juarez, Mexico is well-suited as a manufacturing hub for medical devices with the manufacturing ecosystem required by MDS already well established.

With the Mexican presence, MDS will have manufacturing operations in Asia, Europe and the Americas. The new plant will be fitted-out to meet MDS' requirements and include certified cleanrooms for molding and assembly operations. The plant will be managed and operated to provide the manufacturing quality standards currently expected and provided to MDS customers.

By establishing a new plant in Mexico, Forefront Medical will present existing and future customers with a new mass manufacturing option in response to their requirements - thus ensuring continuity, flexibility and resilience for their supply chain over the long term. Forefront Medical believes that this manufacturing initiative adds value to its customers and strongly signals the continued commitment of Forefront Medical as a growing and trusted global medical device manufacturing partner. The new manufacturing facility is targeted to be operational in the second half of the calendar year 2024.