Omaha World Herald reported that Omaha Steel Castings has secured most of the funding for a new USD 13.5 million facility in Wahoo.
Omaha Steel said that a USD 5.4 million Small Business Administration loan and USD 6.5 million Omaha State Bank loan will cover about 90% of the total cost for the century old Omaha company's new facility. The SBA loan, a 504 refinance loan made available through the Nebraska Economic Development Corporation, is the second largest SBA loan approval in the US this fiscal year.
Mr Phil Teggart president of Omaha Steel said that "It's a big concern that's off the table. Now, our job is to get the thing built and get it up and running."
The company, currently located at 46th and Farnam Streets, announced the move earlier in 2012. It broke ground on the 20 acre site northeast of Wahoo in April 2012 and is on track to have the first 100,000 square foot building enclosed by December 2012.
The company expects to start moving to Wahoo by next spring and finish up by the end of 2013. The foundry's operations, making such products as machine parts and oil valves, building frames and power plant doors, will continue at both facilities during the moving process.
Celebration of the official groundbreaking is next week.
Mr Ted Rowan executive senior vice president of the Nebraska Economic Development Corporation said that with its new facility and secured financing, the company’s profitability is expected to grow. He added that "It'll be so much nicer over there in Wahoo for them. These programs allow people to get into a building no matter what kind of size or structure. It's good for the bank, good for the business and just makes good sense."
The company's sales have been picking up since dropping to about USD 10 million in 2009. They bounced back to about USD 16 million in 2010 and USD 25 million in 2011. This year, the company is projecting sales to reach USD 30 million.
Mr Charlie Boone, senior vice president at Omaha State Bank, said that it's exciting to work on a project that will help the company reach its goals and help Wahoo benefit economically. He said that "The collaborative relationship we have built with Phil and his team is very rewarding and it made this expansion possible."
Omaha Steel's move opens up its current space just west of the University of Nebraska Medical Center and Clarkson Hospital. The 10.67 acres, and a nearby 1.65 acres, had been listed for sale for a combined USD 8 million.
Source - Omaha World Herald
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