ANAHEIM, CALIF. — Precision Extrusion Inc. in South Glens Falls, N.Y., has formed a joint venture to manufacture specialty medical tubing in the United Kingdom.
The partnership with Zynergy Core Technology Ltd. in Runcorn, England, will link Zynergy's polyurethane resin manufacturing with Precision's extrusion work. The venture will employ six in a 6,000-square-foot factory with one extrusion line in Runcorn, near Zynergy's existing plant.
Precision will own slightly more than half of the venture, for tax reasons, but the companies essentially are equal partners, said Michael Badera, president of Precision and chief executive officer of the venture. The venture, named Zynergy Precision Extrusion Ltd., will be managed on a day-to-day basis by a Zynergy employee.
Both companies invested a total of about $1 million.
The companies reached the agreement in October but held off announcing it until the Medical Design & Manufacturing West 2001 show, held Jan. 8-10 in Anaheim.
The partnership grew out of a long-standing business relationship — Zynergy sold resin to Precision and in turn bought Precision's tubing to use in some of its medical products, said Simon Dixon, Zynergy Core general manager.
The venture will target many medical markets, try to expand markets for polyurethane medical balloons and help Zynergy Precision make a complete catheter from urethane, Dixon said.
Precision has four extrusion lines in South Glen Falls, with annual sales of about $2 million. Zynergy Core, with nearly $10 million in annual sales, supplies biomaterials and coatings.