Seven medical component suppliers have linked operations as MedSource Technologies Inc. in Plymouth, Minn., to provide integrated services to original equipment manufacturers.
``The OEM device market has been going through consolidation in the last two to three years,'' Kevin Kelly said by telephone. OEMs ``are looking for the whole package'' including product design, development, metal and plastic processing, subassembly, assembly and complete devices.
The firms, which combined April 1, have more than 600 employees and project 1999 sales of more than $100 million, said Kelly, director of business integration. MedSource is now the largest contract supplier in the industry, he said. The company has ``the size and ability to invest further as domestic and international customers grow.''
On the plastics side, MedSource injection molds high-precision, hand-held medical instruments; overmolds metal components; and produces implant devices in clean rooms, Kelly said. Some plastics processing is subcontracted.
Kelly declined to quantify the molding capabilities.
The suppliers, now MedSource business units, include Brimfield Precision Inc. of Brimfield, Mass.; Hayden Precision Industries of Orchard Park, N.Y.; InstruMed OEM Ltd. of Englewood, Colo.; Kelco Industries Inc. of Brooklyn Park, Minn.; MicroSpring Co. of Norwell, Mass.; Portlyn Corp. of Moultonborough, N.H.; and Texcel Medical Products Corp. of St. Paul, Minn., formerly a unit of Texcel Inc. of East Longmeadow, Mass.
None of the firms make proprietary components. So far, MedSource has not decided whether to maintain the individual identities, Kelly said. ``All have a vested interest in MedSource.''
John Hertig heads MedSource as chief executive officer. ``The markets that we serve are experiencing rapid change, and our customers, as a result, are changing the way they do business with their suppliers,'' Hertig said.
MedSource plans a large exhibit at the Medical Design and Manufacturing East exposition May 25-27 in New York.