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March 4, 2019 / TRACOE medical GmbH
Expansion of structure, site and spectrum: TRACOE medical records positive results for 2018

Group revenues increased by 10% to approx. EUR 33 million
Systematic preparation for the Medical Device Regulation
Significant growth in employee numbers by 10.5%

TRACOE medical GmbH, with headquarters in Nieder-Olm (Rhineland-Palatinate), can report extremely positive results for the 2018 financial year. Thus,
with total revenues of around EUR 33 million, the XTR Group, parent company not only of TRACOE medical, but also its UK subsidiary KAPITEX Healthcare Ltd and the Dutch company Europe B. V., significantly increased its total revenue by 10%. Of this, TRACOE medical alone posted revenue of around EUR
24 million, an increase of 13% over the previous year. However, revenue was by no means the only growth the manufacturer of medical devices for tracheostomy and laryngectomy achieved in 2018. With the foundation of a subsidiary in Austria, the commissioning of its own silicone production facility and the introduction of a significant product line, the focus last year for TRACOE medical was above all the optimisation of the corporate
structure and expansion of the site facilities and product range. “Last year we succeeded in continuing our growth course. Important strategic steps, such as the introduction of a product line for neonates and children or the establishment of our first TRACOE subsidiary in Austria, have laid the foundation for this,” says Stephan Köhler, Managing Director of TRACOE medical. TRACOE medical is also focusing on expansion within the company. Personnel numbers at the medical technology manufacturer rose by 10.5% in 2018. “The number of employees has risen from 200 to around 220 since the beginning of the year”, said Dr Thomas Jurisch, Managing Director of TRACOE medical. This includes five trainees, who, just as all other employees, benefit from the many opportunities afforded by our holistic concept for personnel development – “TRACOE – promising prospects”. Dr Jurisch: “Because we can only besuccessful when our employees are competent and highly motivated, our aim is to not only create attractive development opportunities for our employees, but to also make sure that they enjoy working for us.

First subsidiary in Austria
The branch in Austria, our neighbouring and partner country, was an important strategic step last year for TRACOE medical. In order to strengthen its own presence in Europe, the medical technology manufacturer set up its first subsidiary in Salzburg: TRACOE medical GmbH Austria. „With our site in
Austria, we will be able to advise our customers even better and work more closely with them“, Stephan Köhler said. The subsidiary is supported in this by the entire back office sales structure and logistics of TRACOE medical in Germany.

TRACOE medical embraces the challenge of the MDR
The family business, which, since its founding, has grown from a small specialist company into one of the world’s leading medical technology manufacturers, also displays its strength and quality in other ways. For example, TRACOE medical has been rigorously preparing for the implementation of the Medical Device Regulation (MDR), which definitively enters into force in May 2020. In addition to this, the medical technology manufacturer has initiated two large programmes that will ensure MDR-compliance. There are good reasons why the company is making this effort, as the new regulation poses the industry’s biggest upheaval for decades. The regulatory expense was so high that there was a risk it would present insurmountable hurdles for niche products and for small medical technology manufacturers, in particular: “We intend to position ourselves optimally for the future. We have therefore made the conscious decision to implement the new regulations as quickly as possible”, Dr Jurisch explains.

A silicone production facility of its own and new product line
The MDR sets very high standards for medical technology manufacturers, especially in the field of product development. But this does not deter TRACOE
medical from intensifying its own research and development. Thus, in summer 2018, the company introduced the “TRACOE silcosoft” line and, in doing so,
expanded its range for neonates and children. In order to ensure its high quality standards are maintained, TRACOE medical even established its own silicone production facility on the Nieder-Olm site, where the silicone components required for assembly of the end product will be produced. With “TRACOE silcosoft”, the medical technology manufacturer is intensifying its activities in an important global area of business and is setting the course for further growth in this highly specialised segment.

Big plans for 2019
TRACOE medical has no intention of resting on the laurels of last year’s success and new projects have long been in the pipeline. “The MDR will continue to keep us occupied in future years“, Köhler acknowledges. The planned expansion of the site is also not yet complete: “We will extend the office premises in Nieder- Olm – either by adding new floors onto the existing buildings or by building new ones in the direct vicinity”. The medical technology manufacturer also plans to work even more closely with the other companies in the XTR Group. As part of its digitalisation strategy, TRACOE medical plans to upgrade its “proAlpha” ERP software and expand the scope of its functions. Köhler: “We are confident that we will continue to build on our exciting development and we cannot wait to see what else 2019 has in store for us”