Issued by: CHALMERS magasin (Goteborg, Sweden)
Issued on: Jan-Mar 2008

In Taoyuan, just south of Taipei, Taiwan, we find the headquarters and the main production center of Scandinavian Health Ltd. (The SHL Group). Here I met Frank Isaksson, the General Manager and one of the men who helped build one of the world’s leading manufacturers of advanced medical devices.  

Frank Isaksson is in a good mood when he meets me in the main entrance of SHL Group headquarters, called “Taoyuan One”. On our way into the factory he stops several times to speak with his colleagues, both in Mandarin and in English. The manufacturing area is spotless, looking more like a laboratory than a factory. The working environment almost gives off a futuristic impression. In one of the larger areas of the facility, robots operate advanced molding machines that make components for auto injectors, one of the SHL Group’s core products. Auto injectors are pen-shaped devices used by pharmaceutical and biotechnology companies to deliver drugs mechanically. In the next room, we find the manufacturing of machines and components for the company’s own automation department.

“We want the best possible quality control while increasing productivity. Contrary to global outsourcing trends, we do as much as possible in-house. We also manufacture our own springs, metal components and packaging material. Today, the design and manufacturing of our automation equipment has become a profitable unit of SHL.”

Taking a chance

Frank Isaksson started at The SHL Group by chance. After his graduation in mechanical engineering from Chalmers University he worked in Malmo, Sweden for three years with technical support and material sales in the Scandinavian plastics industry. In January of 1995 he travelled to Taiwan to study Mandarin. There, he met the entrepreneur Roger Samuelsson through the Swedish Trade Office. By then, Roger had signed a contract to produce an auto injector for Upjohn, a pharmaceutical company later acquired by Pfizer.  

“As a completely unknown company we got the contract in exchange for being responsible for all costs involving development and production. There was no guarantee that Upjohn even would even accept the product. There were risks, but also big rewards if we managed to do it right.”

“We succeeded in satisfying Upjohn and SHL got its foot in the door, something that would be almost impossible to repeat today. Now the industry’s entry requirements are so high. Because the drugs used in auto injectors are extremely expensive, only established companies with a record of success can compete for contracts. Uncertainty or mistakes are simply unacceptable”, says Frank Isaksson.

Investing profits

The auto injector was designed in Sweden and a Taiwanese company was contracted to manufacture the product. Frank’s assignment was to create the entire production process. To ensure the highest possible quality, he created a quality program on his own. Despite a big difference between the theory learned in Frank’s studies and the realities of manufacturing, his education at Chalmers University was still a solid base for his work. “I had acquired the knowledge and the confidence that was needed to be able to process information and draw conclusions. I had a great chance to implement what I studied at Chalmers, such as product development, logistics, lean manufacturing and production development”, he says.

Frank has brought a lot of knowledge from his studies with him to his work and mentions lectures on the industrial organization of Japanese companies. “I especially remember what they taught me about never seeking the short-term satisfaction of shareholders who want to quick profits. Because of that, we have never allowed venture capital investment in our company or made decisions that will increase profits in the short-term but make us weaker in the long-term.”

“Instead, we invest all profits in new plants, innovative products, machines, and the best talent in the market. You can only operate like that in a privately-owned company that doesn’t have to satisfy shareholders. We have no plans to go public,” he says in a very determined way. The auto injector market is experiencing rapid growth. Today, the SHL Group is the world leader in the development and production of auto injectors. Twelve years ago the company consisted of two entrepreneurs; today it has more than 1,300 employees spread all over the world.

“To have the chance and start something and build it to what the SHL Group is today has been extremely fun. Actually, I remember many years ago I thought it was amazing that I got paid for the work I did. I would have gladly have done it for free.”

* This article was translated to English from the original Swedish-language article in CHALMERS magasin. Editorial changes have been made to the English version.
http://www.chalmers.se/HyperText/ChalmersMagasin/nr1_2007/taiwan.pdf

About SHL

SHL is the world’s largest privately-owned designer, developer and manufacturer of advanced drug delivery devices. We have over 1,500 staff globally (1000 staff in Taiwan), with our primary design centers located in the USA and Sweden and manufacturing centers located in Asia.

SHL supplies auto injectors, pen injectors and inhaler systems to global pharmaceutical and biotech companies. Significant investment in R&D has enhanced our broad pipeline of “next generation” drug delivery systems. These innovative devices include a range of disposable and reusable injectors with fixed or variable dosing, enhanced precision and the ability to accommodate high viscosities.

Our organization consists of three distinct group companies:

SHL Medical
Designs, develops and manufactures advanced drug delivery devices for leading pharmaceutical and biotech companies

SHL Healthcare
Develops and manufactures equipment solutions for home, hospital and long term care use

SHL Technologies
Provides contract manufacturing and engineering services for the production of complex medtech and industrial products

For additional information visit www.shl-group.com or contact us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it