The U.S.-based Medtronic, Inc. one of the world's largest makers of medical equipment, has signed a non-binding letter of intent to buy a 15-percent stake in the Shandong Weigao Group Medical Polymer Co..

Hong Kong-listed Weigao group expected to explore cooperation with Medtronic in manufacturing, distribution and product development, said Chen Xueli, chairman of Weigao Group., in a statement on the company website.

No timetable for the purchase was given.

Chen said the deal was consistent with its goal to pursue strategic alliances with international and leading industry players.

The Weigao Group was established in Weihai, east China's Shandong province, in 1988. It is one of the major Chinese manufacturers of medical supplies with total assets of 1.5 billion yuan (194 million U.S. dollars) and more than 4,500 staff.

Based in Minneapolis, Minnesota, Medtronic Inc. is a major medical technology company listed on the New York Stock Exchange. It employs more than 30,000 people worldwide, and operates in 120 countries and regions. Its total sales in 2006 were 11.3 billion U.S. dollars.