Sandvik tax freeze clears panel

Medtronic workers will be relocated after firm bought

The Commercial Appeal
February 1, 2008
By Amos Maki

Sandvik Medical Solutions, which is buying Medtronic Inc.'s $20 million Bartlett-based business, received preliminary approval Thursday for tax freezes.

Sandvik, a $100 million surgical instrument and implant manufacturer, will bring a corporate office and take 112 former Medtronic workers from the Bartlett facility to the airport area, where it is establishing its international medical technology headquarters.

Sandvik, owned by Swedish industrial company Sandvik Group, will create 45 additional jobs with a median wage of $52,793. The company's capital investment at the building at 4477 Getwell would reach $5 million.

The Memphis and Shelby County Industrial Development Board's evaluation committee granted the company early approval for a seven-year payment-in-lieu-of-tax freeze that would save the company $829,238. The full board will vote on the matter at its February meeting.

Sandvik's local clients include Medtronic and NuVasive Inc., a spinal surgery product manufacturer with a plant and distribution center near Memphis International Airport.

"We see the Memphis market and community as strategic for us," said Ken Birdsong, president and managing director of Sandvik. "Positioning ourselves globally from this market and developing our business base here is very important for us."

Birdsong is a 1981 University of Memphis graduate and former Smith & Nephew veteran.

Sandvik's acquisition of the Medtronic unit is expected to close today.

Many of the jobs will be for machinists who manufacture the surgical products used by Sandvik's customers.

"It's a very skilled trade," said Clay Clayton of Medtronic.

Medical device manufacturers are being targeted by Memphis economic development officials.

"I'm very enthusiastic about this project because I think it could be another success story for Memphis," said Jackie Tompkins, office of economic development officer.

Sandvik recently bought JKB Medical Technologies, a leading contract manufacturer of spinal implants and medical instruments that has plants in the Memphis area and in Connecticut, and sales of $14 million.

Sandvik is expected to merge JKB operations here with the Medtronic acquisition as it scales up to grow at an annual 10-15 percent to keep pace with the nation's need for implants.

- Amos Maki: 529-2351

Sandvik Medical Solutions

Sandvik is a $100 million surgical instrument and implant manufacturer, known commonly as a contract manufacturer.

Sandvik is buying Medtronic Inc.'s $20 million Bartlett-based business, adding a corporate office and moving 112 former employees to the airport area.

Net new jobs: 45

Location: 4477 Getwell

Tax freeze: An Industrial Development Board committee granted Sandvik preliminary approval for a seven-year payment-in-lieu-of-tax freeze.