Ostem Implant Approaches 'Countdown' to Saudi Entry... MOU with Government-Affiliated Organization

Osstem Implant recently announced on the 19th that it signed a business agreement at the Four Seasons Hotel Seoul with the National Industrial Development Center under the Ministry of Industry and Mineral Resources of Saudi Arabia to support the establishment of dental medical equipment production facilities and distribution infrastructure in Saudi Arabia.

Nizar Al-Hariri, Senior Advisor to the Minister of Industry and Mineral Resources of Saudi Arabia; Eom Tae-gwan, CEO of Osstem Implant; H.E. Bandar Al-Khorayef, Minister of Industry and Mineral Resources of Saudi Arabia; Abdulrahman Al-Faifi, Vice President of the Medical Equipment Business Division at the Saudi National Industrial Development Center (from left) are posing for a commemorative photo.
[Photo by Osstem Implant]

Through this agreement, Osstem Implant plans to support the establishment of production facilities and distribution infrastructure to contribute to the development of the healthcare industry and the improvement of health and welfare for local residents in Saudi Arabia. It will also review directions such as providing clinical education to local dentists.

The Saudi Arabian government declared ‘VISION 2030’ and announced plans to invest 85 trillion KRW in the healthcare industry by 2030. Osstem Implant explained that the Saudi government selected Osstem Implant as the top priority business partner for revitalizing the dental industry and first proposed the business plan to Osstem Implant last November.

The signing ceremony was attended by Osstem Implant CEO Eom Tae-kwan, H.E. Bandar Bin Ibrahim Alkhorayef, Minister of the Ministry of Industry and Mineral Resources of Saudi Arabia, and Abdulrahman Al-faifi, Vice President of the Medical Device Business Division at the National Industrial Development Center under the Ministry of Industry.

Minister Bandar Bin Ibrahim Alkhorayef said, "Healthcare is an important part of the government’s vision to improve quality of life, so we have great ambitions to foster the healthcare industry." He continued, "As a global leader in the dental industry, we hope Osstem Implant will consider local investment. This business agreement will serve as a bridge for Osstem Implant to expand its presence in the Saudi Arabian market."

Osstem Implant CEO Eom Tae-kwan stated, "We will consider establishing medical equipment production facilities, such as dental units, in Saudi Arabia. Saudi Arabia is a key export hub in the Gulf region, which offers much easier logistics compared to exporting from Korea." He added, "Our strength lies in the ability to grow the market. If we establish a direct sales organization in Saudi Arabia, we expect rapid growth locally." Regarding clinical education, he said, "We have the world’s best clinical education system. If we focus on training more dentists to perform implant procedures, it will greatly help foster the local dental industry."

Currently, Osstem Implant produces 18.3 million implant sets annually in Korea and 2.28 million sets in the United States. Additionally, digital products are manufactured in the U.S. and China, and medical equipment is produced in Korea. These products are exported and sold in up to 92 countries worldwide.

Osstem Implant is also attempting to enter the Middle Eastern market, having signed a contract last year to supply 1,500 units of the 'K3' dental unit chair to the Egyptian government over five years. In particular, with the establishment of production facilities in Saudi Arabia through this agreement, it is expected to become a foothold for entering not only the Middle East and Africa but also the European market. Osstem Implant currently prioritizes building the medical equipment production base in Saudi Arabia and explains that implant business will remain a future consideration due to its special nature, which requires at least 10 years to reach business sophistication.

Osstem Implant is also considering establishing a Saudi Arabian corporation. Since accelerating business in close cooperation with the Saudi government is necessary, it is judged that the Middle East corporation alone may be burdened with overseeing all operations.

Kim Ki-duk, Head of Overseas Sales for Europe and the Middle East at Osstem Implant, said, “As the growth of the Saudi Arabian dental industry is anticipated, a direct sales approach with corporate sales staff providing detailed customer service will be inevitable. Until the Saudi Arabian corporation is established, we will newly hire direct sales personnel for the Middle East corporation and operate a separate local academic and education team.”