BUSINESS R ehovot, Israel — nestled between countless rows of citrus groves and palm trees is a small lab, where a team of scientists spent the past eight years developing a breathable, lightweight and water-resistant material that can filter out bacteria. The scientists work for Gelman Sciences Inc. of Ann Arbor, the only Michigan cor- poration with an Israeli sub- sidiary, Gelman Sciences Technology, Ltd. In fact, results of the venture have been so successful that Gelman Sciences this week created a new Israeli unit, MicrorIbchnologies Inc., which in July will begin manufac- turing the product — a microporous membrane filter. Former Senior Vice Presi- dent James Marshall will serve as president of the new business operation. And Dr. Gerald Tanny, the inventor of the material who started the Israel unit, was named vice president of MicroTechnolo- gies Inc. The Israeli group now employs 35 people. Now Gelman Sciences is test marketing the material — a thin film made up of thousands of evenly sized microscopic holes. Company officials are looking for a part- ner to commercialize the pro- cess in whiCh filters are used to remove impurities from solutions, to sterilize phar- maceuticals by taking out bacteria and as vents to filter gases from materials. Industry analysts say Gelman's Sunbeam process is simpler, cleaner, more energy efficient and 80 times faster than conventional filtration methods. This makes product costs less expensive, which can directly t.,,nslate to con- sumer prices. Charles Gelman, president and chairman of the board, calls Sunbeam a scientific breakthrough that could significantly boost profits of the company. In 1988, Gel- man Sciences generated $62 million in sales. This year, company officials expect revenues to climb to at least $70 million. Gelman Sciences produces filters for laboratory and manufacturing-process customers in such industries as health-care, pharmaceuti- cals and food and beverage. Kimberly Lifton spent a week in Israel with members of the American/Israel Cha'.iber of Commerce. This is the second in a series" on Israel's business climate. ti" y3 71`11)1 Ovima, y1 ID71 Ic,-31,to$0.0y. Utt, Chairman Charles Gelman. Gelman Marketing Director Ian Taylor and Research and Development Vice President Dr. Menahem Kraus in Rehovot. The rain Trust The Israeli arm of an Ann Arbor company prepares to unveil a scientific breakthrough. KIMBERLY LIFTON Staff Writer As the Sunbeam process un- veils, the company will for the first time move into the clothing business. Eventual- ly, company officials say, the process may be used for other filters produced by Gelman Sciences. First on the drawing board are plans to enter the athletic wear market with a product line similar to GORE-TEX, which makes lightweight, water-resistant gloves, run- ning suits and other gar- ments. GORE-TEX uses a high-tech fiber, which like the Sunbeam material, is breathable. Edward Gregor, Gelman Sciences vice president, sug- gests the Sunbeam process gives the company potential to grow at least as fast as GORE-TEX, a private com- pany which Gregor says skyrocketed from $5 million to $500 million in sales in five years. "We are interested in sell- ing an everyman's GORE- TEX," says Ian Taylor, Gelman's Israel marketing director. "We will sell generic film, and companies can give it their own names." Gregor says Gelman Sciences also is talking with GORE-TEX officials about selling the material from the Sunbeam process. "Sunbeam is a gem that has yet to be discovered," Gregor says. "The product will access the mass market- place," Another goal is to make the product available to hospital personnel who work with pa- tients afflicted with con- tagious diseases like AIDS. A water-resistant material with viral barriers, company of- ficials say, would keep con- taminated body fluids from spreading through clothing. In addition, Taylor says, Sunbeam filters will create the first bacteria-free product that can be used to make surgical wear lighter and more comfortable. Gelman Sciences, the third largest corporation of its kind, makes over 3,000 filtra- tion products. Among them are pharmaceutical items used for sterilizing injectable substances, intravenous flu- ids and drugs. The filters are used to produce cough syrup, aspirins, ointments, eye drops and saline solution for con- tact lenses. Eight hundred employees work in Ann Arbor, and at subsidiaries in Australia, Canada, Ireland, England, Japan and Israel, which has offices in Jerusalem and Rehovot. In addition to the Israel ex- pansions, the company this year plans to open a research facility in Pensacola, Fla. Sunbeam's developer Dr. Gerald Tanny. C harles Gelman first toyed with the idea of doing business in Is- rael in 1977. Dr. Tanny, who was on sabbatical as a guest researcher at Gelman from the Weizmann Institute of Science, came up with the Sunbeam idea, and wanted to return to Israel. New President James Marshall. With $500,000 million loan from the BIRD Foundation, which offers low interest THE DETROIT JEWISH NEWS 69