Recent Projects
The Keweenaw Economic Development Alliance provides assistance to businesses to through successful expansion, start-up and retention projects.
Somero Enterprises, Inc. --This producer of laser-guided concrete screeds completed its third expansion in just the last few years. The expansion involved a $600,000 building addition which added 19,000 sq. ft. of plant capacity, in addition to $300,000 of additional equipment and the addition of 42 new employees in 1998. The KIC assisted the company and Portage Township to successfully apply for and obtain a $225,000 infrastructure grant to extend a badly needed sewer line from Adams Township to the plant site. The KIC also assisted the company and Portage Township to complete tax abatement procedures to allow the company to invest additional resources into the expansion. Somero now has 95 direct employees in addition to the approximately 200 employees in local metal fabrication shops that are working exclusively on Somero subassemblies.
Strandwood Molding, Inc. -- A producer of molded strandwood office seating, the company started-up with assistance from local investors, bankers, the Houghton County and Superior revolving loan funds and the KIC in 1997, and is an important addition to the local wood value-added sector. The company has been growing steadily but, because it had not yet reached break-even, was in need of additional working capital. As part of a team of local banks, investors and federal financing sources the KIC helped the company obtain the financing it needed. Strandwood Molding added five new employees in 1998.
Tober Advertising -- Mary Tober relocated to Baraga having experience in radio advertising and marketing in California. Because this area did not have and badly needed an advertising firm that could develop and deliver a package of advertising and marketing services, the KIC assisted her to evaluate the feasibility of starting up an advertising agency in the Houghton Keweenaw-Baraga area, to write a business plan, to obtain $10,000 of start-up financing and to identify potential customers in Keweenaw and Houghton counties. One job was created.
Superior Polymer Products -- Joe Shaffer, an MTU chemical engineering graduate who returned to this area in the mid-1980's began this company to develop and market polymer adhesives and coatings. The company had successfully established itself as a viable company with customers throughout the U.P. and Northern Wisconsin. The company was located in Shaffer's home and had the potential to expand. Shaffer approached the KIC for management advice and location assistance and, in 1998 with assistance from the KIC and Calumet Township, constructed a new plant in the Calumet Township renaissance zone. The company created one new job in 1998 and has expansion potential.
Nitrate Elimination Company, Inc. -- This company, which produces nitrate reductase products for the research, educational and other markets is the only biotechnology company in the Upper Peninsula. The company has been steadily increasing sales of its products and needed to hire marketing and other personnel in order to speed commercialization of its products. The company approached the KIC and the Houghton County RLF which worked together to provide a $50,000 working capital loan. This expansion will create 2 additional positions.
ThermoAnalytics, Inc. -- The company spun off from MTU in 1996 to provide software services to the auto and other industries and to begin to develop and market proprietary software products. The company has now developed a software product called WinTherm that assists design engineers to analyze heat signatures generated by auto engines, electrical parts and other components. The company growth is dependent on sales of proprietary products which required the hiring of additional design and marketing talent. The KIC worked with the Houghton RLF, the Superior RLF and North Country Bank to package a $150,000 expansion financing loan that will allow two key employees to be hired and funds for product marketing.
Rippa Products -- This producer of screw machine products has been increasing production for the past few years and was in need of a newer and larger facility to allow further expansion of production. The KIC has worked with this company for the past few years to help determine the feasibility of construction a new plant. Most recently, the KIC teamed with Calumet Township and National City Bank to assist Rippa to construct a new 7,500 sq. ft. plant in the Calumet renaissance zone and to purchase additional equipment. 2 additional employees will be hired.
Blizzard Corporation -- This new company is a start-up that will produce innovative snowplows and other snow and ice equipment. The principals recently sold their interest in Cuda Cleaning Systems, a very successful company they created in 1994. The company initially approached the KIC and Houghton County for assistance with financial packaging and location assistance. Blizzard was subsequently able to obtain financing from Superior National Bank. The KIC and the County are cooperating to locate the company in the Houghton County Airpark renaissance zone and the company has constructed a 34,000 sq. ft. plant in the ren zone that, (completed in May, 1999) will initially employ 2O-25 employees. Blizzard is another striking example of the design, management and marketing talents of local entrepreneurs.
Superior Transportation & Delivery, Inc. -- The company, which began operations in late 1997, approached the KIC requesting assistance with obtaining working capital and with obtaining an operating subsidy from the Michigan Department of Transportation (MDOT). The company operates a profitable delivery and charter business but was operating its U.P.- wide line haul business at a loss which was acting as a financial drag on the entire company. MDOT was aware that the line haul was unprofitable and that the U.P.'s extended geography and low population density required some type of operating subsidy, but had not stepped forward to provide financial assistance. The KIC solicited the participation of Concepts Consulting to provide financial consultation and has been working with economic developers across the U.P. and with the U.P.'s political representatives to work with MDOT to obtain financial assistance for the company. To date, 32 jobs have been retained and, in fact, the company has significant growth potential in its charter and delivery businesses.