U.S. extruder builds manufacturing plant in Hangzhou.
HANGZHOU, CHINA — Spurred by rapidly growing demand in China’s healthcare market, American specialty tubing extruder Precision Extrusion Inc. has opened a joint venture manufacturing plant in the eastern Chinese city of Hangzhou.
Precision, in Glens Falls, N.Y., has seen China grow from negligible sales levels five years ago to about 20 percent of the small company’s revenues, as the Chinese government has significantly boosted spending on healthcare, said Precision President Michael Badera, speaking in an April 16 interview at the China International Medical Equipment Fair, in Shenzhen, China.
Precision has a majority stake, while a Chinese investment firm Tong Xiang Peng Yi Ltd., in the city of Tongxiang, Zhejiang province, holds a minority position, he said, declining to disclose details of the investment or ownership stakes.
“It was a multimillion dollar investment,” Badera said.
The joint venture, which started production earlier this year, is called Hangzhou Peng Yi Precision Catheter Technology Ltd. The Chinese partner is a small privately-owned investment firm, Badera said.
The Hangzhou facility could eventually start to manufacture some of the company’s catheter balloons and have operations for applying lubricious coatings, which make the catheters easier to insert into the body, he said.
The factory is in the Hangzhou Economic and Technology Development Area, a giant industrial park outside the city. The park was helpful to Precision and provided the firm some grants to help defray rental costs, he said.
Badera also said the joint venture is considering expanding beyond components into producing finished goods and eventually doing an initial public offering.
Precision Vice President Rosy Wang, a native of Hangzhou and longtime employee of Precision, is the chairman of the joint venture.