Radiation sterilization for medical devices, implants and pharmaceutical primary packaging is increasingly in demand at BGS Beta-Gamma-Service, also as a result of population growth, and is generating positive figures in this division. By contrast, the stagnation in the construction industry is having a negative impact on the radiation crosslinking division. The company therefore remained stable in the 2023 financial year despite the difficult market environment.
The rising demand for radiation-sterilized medical devices, implants and pharmaceutical primary packaging materials and raw materials had a positive impact on BGS’s business performance with an increase in the low single-digit percentage range. “The medical technology sector is growing, but is also under increasing pressure. An ageing society with increased demand for sterile products and packaging is faced with high costs, including for the implementation of the EU Medical Device Regulation (MDR), which is having a negative impact on investments in Germany and research expenditure,” says Dr. Andreas Ostrowicki, Managing Director of BGS Beta-Gamma-Service.
Structural problems weigh on Germany as a business location
High energy costs and an unchecked increase in bureaucratic regulations weighed on Germany as a business location in 2023. Supply problems with raw materials and possible long-term effects, particularly for plastics and metals, are also having a negative impact. BGS is concerned about business relocations abroad, such as those announced by the chemical industry, and their consequences for the manufacturing industries. “In Germany, the problems of bureaucracy and regulation, energy and logistics costs and the supply of raw materials have been a growing concern for some time. Last year’s interest rate developments had an additional negative impact in this combination,” explains Ostrowicki. “For some manufacturers of medical devices with higher cost pressure, such as single-use devices or products for wound care, a point seems to have been reached where, in many cases, a decision has already been made against Germany as a location for new investments.”
New production space at the Wiehl site
Despite rising energy costs, BGS Beta-Gamma-Service remains committed to its business activities in Germany and is currently making a seven-figure investment in new production space at its founding location in Wiehl, North Rhine-Westphalia.