Boston Scientific To Build In China

Brendan Lynch, Boston Herald Natick medical device maker Boston Scientific, which has received millions in state and local tax breaks for its facilities in Marlboro and Quincy, despite cutting its Bay State work force in recent years, said yesterday it would hire 1,000 workers and build a $150 million factory — in China. “It’s disappointing that Evergreen Solar and Boston Scientific both decided to build in China and not in Massachusetts,” said state Sen. James Eldridge, an Acton Democrat. “It’s even more disappointing Boston Scientific did it, because they’re a successful company.” Boston Scientific, which didn’t return calls yesterday seeking comment, received millions in state tax breaks in 2006 in exchange for a commitment to add 331 jobs by 2010. Instead, in 2010, it announced it would cut more than 1,000 jobs worldwide. Eldridge has proposed a bill to make such tax breaks more transparent by detailing them on a Web site, and to make it easier to get the state’s money back when companies fail to meet job promises. Eldridge said the Boston Scientific situation echoes Evergreen Solar’s decision earlier this year to shift manufacturing from Devens to China at the expense of 800 jobs. Evergreen is now on the brink of bankruptcy, its stock worth 32 cents. Boston Scientific, whose CEO Ray Elliott plans to step down at the end of the year, didn’t announce any new Bay State job cuts yesterday. But Matthew Dodds, a medical technology analyst for Citigroup, said emerging markets such as China will force the medical device industry to scale back its work force in the United States and Europe. “If I’m forecasting the next three years, I’m shrinking their infrastructure in the U.S. and Europe and growing it outside,” Dodds said. “That’s not unique to (Boston Scientific). Everyone they compete with is doing it.” Noah Berger, president of the Massachusetts Budget and Policy Center, said companies will build their businesses where it makes the most economic sense, not where they get tax breaks. Taxpayer money would be better spent on work-force training and education, he said. “It’s wasteful for the state to use capital to subsidize companies to do things that don’t make sense anyway,” Berger said. The Patrick administration saw a silver lining yesterday in Boston Scientific’s China expansion. “When a locally based company expands and increases their sales in other markets, Massachusetts benefits,” said a spokeswoman for Greg Bialecki, economic development secretary for Gov. Deval Patrick, in a statement. “Having global life sciences companies headquartered here is one of the many factors that contribute to the commonwealth’s global leadership in this innovation sector.” Read original post here.