понедельник, 13 апреля 2020 г.

Every Catastrophe Offers Opportunity

In true form, when ever one door closes another door opens.

With Covid-19 ravaging supply chains all over the world, medical supply chains have found themselves no exception. From the early days of the pandemic in China to the now global crisis, it quickly became evident that outsourcing the majority of your medical materials and equipment manufacturing, including ingredients for medication, to one country, is hardly a good idea.

Long before Covid-19 became a household name or was even thought up, various voices in Russia were urging the government to more fully invest in local manufacturing of at least medicines if not the equipment for hospitals. The government was slow to act, however the financial and economic war that the West declared on Russia in 2014 brought more attention and political will to this issue.

As President Putin made it his aim for the drastic improvement of the Russian medical system, especially outside of the top 5 major cities, it quickly became obvious that importing all the needed medical equipment would prove to be a very expensive endevour and one that was wrought with tensions as the US Congress played its favorite game of Tariff Russia. Thus, investments were already being realized in the medical fields for manufacturing of state of the art medical equipment for various purposes in Russia: from x-ray to artificial/assisted breathing machines.

Along comes Covid-19 and world wide everything unravels. Luckily for Russia, or a God send, you decide, the plague hit Russia almost last and has only in the past 2 weeks started to rev up. This gave Russia an additional two months to ramp up manufacturing in many sectors and to start to move fringe developments and technologies into full on exploitation. There is nothing like a war time footing to move technology along at rates otherwise not imagined. Survival is the real mother of innovation.

And so, Russia now stands on the precipice of coming out of this as a power of modern medical manufacturing. Below we will go over only a few of the new or expanding productions. As more information appears I will of course update this post.

This can be equally seen in the 16 new infectious disease hospitals being built across the country. These, unlike the Chinese container temporary Wuhan facility, are permanent state of the art facilities with 41 days start to turn key completion build cycles. Each of the hospitals are set up for 500-1000 beds and all the equipment has been procured from Russian companies. From top of the line adjustable beds, to surgical equipment, monitoring systems and stations, ambulances and assisted breathing machines. All are being delivered now and this is only possible because they are localized production, not imports from China or Europe.

So, we will start with the big heavy weight of the Covid-19 season: artificial/assisted breathing machines.

At present, Russia has some 44.000 units of various age and capacity in service, Japan 23.000. As a further comparison, Krasondar, the main southern commercial center with a population of about one million people has 950 such units in service. Milano, the main Italian industrial center with a population of 1.3 million coupled with horrid air quality, had 48 units.

As of March, Russia was producing some 300 state of the art units per month. With massive government support, the production is being increased to 500 units this merry month of April, with the aim of 2500 units monthly by the close of May and peaking at 3.000 units. Of course this level of sustained production is well past the capacity needs for Russia itself, but it will go to fill export orders. As of now, 30 nations have either placed or in the process of placing orders for machines.

The units are being produced by Shabe Holdings, a division of Rostec, in their Uralskii Optical-Mechanical manufacturing plant.

Other key productions of masks and garments are also taking off. Small and medium sized businesses are retooling. Production of the high grade masks has reached 2.1 million units per week with another 300.000 coming online this week. Of course this does not fill the demand but considering previously Russia was importing all of this volume, this has gone a long way in manufacturing from basically nothing.

Two technopark universities in Ekaterinburg and Tymin have also begun printing plastic masks (they still require cloth for the breathing filters) on 3D printers, in serial production. While still at small batches of 500 units per 2 days of printing, the proof of concept in a production environment has been provided, opening the doors to mass production that does not require outsourcing and international logistics or major manufacturing facilities. Equally they are printing replaceable parts to assisted breathing equipment, such as plastic valves that must be changed once every 24 hours.

Medical garment manufacturing, robes for doctors, at 6.000 units daily. At present this is well below daily consumption and stocks are filling the gap. However, manufacturing is being ramped up to 25.000 units per day, as even heavy industry giants like Komaz and Tatneft are retooling for a new manufacturing branch job.

The big bottle neck is cloth for the medical gowns which is still mostly imported from China. In steps Chaikovskii Textile which has come up with a new medical material Panatseya PP180 which is a light weight, flexible material that is inhospitable to bacterial, fungal and viral microorganisms. The textile also is not absorbent, so liquids do not penetrate and cause stains. Full sustained production is in its early stages set to ramp up.

March goggle manufacturing was at 12.000 units per day with the aim of reaching 22.000 units per day by end of April.

Additionally, by end of March, respirators production had reached 20.000 units per day.

Of the seventeen key medications used in treatment of Covid-19, fourteen are manufactured in Russia, the remaining 3 are having to be imported. Unfortunately, this is a much slower ramp up issue, but one that has once again been high lightened as a weak link.

Russian pharma companies are also working on 7 separate vaccines, with live human trials on 60 volunteers (these people are already chosen and half are the scientists themselves) set to start by end of May/early June. Due to the long incubation periods of this virus, testing will take at least 1 month. Generiym, one of those companies, has patented and pushed into full scale production an express test for Covid-19 that delivers results in 30 minutes with a 94% accuracy rate. Yes, I know, the western media has not squeaked a word about this, which should not be in the least surprising.

Other high tech equipment is being manufactured by such companies as Litharinskii Optical Glass Plant, working with Germanium lenses to manufacture top of the line thermal imaging equipment that allows a doctor to scan a crowd up to 30m out and identify individuals in the crowd whose body temperatures are out of norms set.

Evromedservise is now manufacturing a full line of medical furniture with built in ultraviolet radiation lamps for quick and full sterilization of medical equipment and supplies.

Rosatom Helskia has produced large scale radiation sterilization equipment that will sterilize up to 58 million masks per month. Their work contract goes into effect this month.

To keep this engine of production and innovation chugging, the Russian central bank has relaxed all lending requirements to any company starting or currently manufacturing medicines, medical supplies and medical equipment.

Now we will see in what position Russia will be on the medical equipment markets once all of this settles out. Next time you are at your doctor's, the equipment might just read "Made in Russia".

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