Starfire Gets Infusion of Cash: Malta-Based Ceramics Maker Receives $10M Investment Promise

By Eric Anderson, Albany Times Union, N.Y.

Jul. 12–MALTA — Starfire Systems Inc., a developer of advanced ceramics whose products are found in motorcycles and the space shuttle, has received a $10 million investment commitment from a New York City-based private equity firm.

Palladium Equity Partners LLC will get an undisclosed ownership stake in return for its money.

The investment will allow Starfire to expand its manufacturing facilities and capabilities, and add nine people this year to its current work force of 30, said Herb Armstrong, vice president for marketing and sales. By 2008, Starfire should have 40 or more employees, he added.

The company had been seeking investment capital to grow the firm. Armstrong called Palladium “a good match.”

Starfire plans to lease space in an $18 million building being developed by the New York State Energy Research and Development Authority at its Saratoga Technology & Energy Park in the third or fourth quarter. The multi-tenant, two-story building is now under construction, Armstrong said.

Starfire would take 50,000 to 60,000 square feet in the 105,000-square-foot structure, about twice the space it now occupies at another building at the park. The new space will include a high-bay manufacturing area, he said.

Starfire’s products use proprietary ceramic-forming polymers that it says have superior properties but cost less than advanced ceramics made by conventional means.

The company currently manufactures ultra light-weight brake rotors for high-performance motorcycles, both for original equipment and after-market sales, Armstrong said. Motorcycles using its rotors include Ducatti, Suzuki and Honda.

Its products also are found in the space shuttle’s heat shield repair kit.

“Starfire’s nanostructured advanced ceramics position the company to benefit from trends in the aerospace, automotive, electronics, energy and other manufacturing industries where advanced materials are central to growth and innovation,” Peter A. Joseph, Palladium’s managing director, said in a news release.

Armstrong said the privately held company doesn’t disclose revenue.

Eric Anderson can be reached at 454-5323 or by e-mail at eanderson@timesunion.com.

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