Hudson Respiratory Care Inc. is moving its captive injection molding and extrusion production about 75 miles to lower-cost Tecate, Mexico.
Hudson RCI had about 80 injection presses with 80-600 tons of clamping force in Temecula, but to meet current customer demands, is moving about one-fourth of the equipment initially. The firm designs and makes disposable medical products for respiratory care and anesthesia.
In November, Hudson RCI sold two of its Temecula buildings - on either side of its headquarters - to PG Acquisitions for $7.5 million, then leased the structures back temporarily. Management, marketing and product development are to remain in Temecula.
In August, Hudson RCI said shareholders and lenders had provided $18 million for working capital and other company expenses.
Los Angeles investment firm Freeman Spogli & Co. Inc. acquired a majority of Hudson RCI in 1998. With additional available capital, the manufacturer expanded its reach in Europe and Asia in 1999.
The company also has operations in Arlington Heights and Elk Grove Village, Ill.; Argyle, N.Y.; Ensenada, Mexico; Lohmar, Germany; Upplands VÃ¤sby, Sweden; Kuala Lumpur, Malaysia; and Tilburg, the Netherlands.
The privately held firm employed nearly 600 as of Jan. 1.
Hudson RCI announced a three-year contract for respiratory therapy products from health-care management firm Broadlane Inc. of San Francisco in May and a three-year, sole-source respiratory agreement with supply-chain manager Novation LLC of Irving, Texas, in January.