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nonwoven web.8 These two groups of equipment constituted all of
the manufacturing equipment necessary to perform the work in
phase 1 of the manufacturing process; as of the later date, all
of the manufacturing equipment related to phase 1 was located in
MedChem U.S.A.’s facility in Woburn. By January 1, 1991,
petitioners had also transferred certain raw material
manufacturing functions into MedChem U.S.A.’s Woburn facility as
well.
The equipment used to perform the work in phase 2 of the
manufacturing process, i.e., processing bulk flour into finished
flour and finishing and packaging the nonwoven web, remained in
Alcon P.R.’s manufacturing facility in Humacao until early 1995
at which time it was shipped to the Woburn facility. Alcon P.R.
continued in Puerto Rico until early 1995 to manufacture finished
Avitene from bulk flour and dry, sterilize, and package nonwoven
web under the terms of the processing agreement. Alcon P.R. did
so using bulk flour and nonwoven web that had been manufactured
in Humacao during a buildup in 1989 and 1990; it did not use any
bulk flour or nonwoven web manufactured elsewhere. When
petitioners moved the bulk and nonwoven web equipment to MedChem
U.S.A.’s facility in 1990, Alcon P.R. planned to use the part of
8 On separate occasions, MedChem U.S.A. reported to the
Securities and Exchange Commission (SEC) that, as of Nov. 30,
1990, and as of Feb. 28, 1991, respectively, MedChem U.S.A. was
in the process of redesigning its Amvisc manufacturing facility
in Woburn in order to start manufacturing Avitene there.
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