2015.11.17 EDA Agenda Packet - Laserfiche WebLink

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PROPOSED STATEMENT OF SUPPORT 1 LOADMASTER LUBRICANTS DRAFT: 9-18-15 Loadmaster Lubricants is a custom formulator and manufacturer of the highest load-bearing greases in the world. From Hugo, we ship millions of pounds of custom greases annually to the largest heavy industrial equipment companies in the world, global mining companies and other operators nationwide and globally, including North and South America, Australia, India and even Mongolia. We have recorded 50 percent increases in revenue in each of the past two years. This growth has required four plant expansions to our extensive production facilities. Our highly -specialized track -side building includes a new $2 million laboratory facility, staffed by four chemists, and an overall workforce that has doubled in the past year. Because of our continuing rapid growth, the coming year will mark a decision point for us. To increase production to meet our historical and future global demand, we are considering construction of a new 40-50,000 square foot additional plant expansion, a very significant investment in our company's future. Currently we receive more than 200 rail tank cars of oil/other raw materials out of which we build our greases --every year. Continued rail access is absolutely critical to our operations and is the primary cause of location in the Hugo Industrial Park to begin with. If the permanent repairs necessary to keep the line safe and reliable are not made soon, that fact will certainly weigh heavily on our decision whether to expand in our Hugo location or relocate to another state where we can be assured of dependable freight rail service. The possible alternative to Loadmaster in the Hugo Industrial Park with the kind of sustained growth that Loadmaster has had, and is continuing to have, without rail service is remote in the extreme. Jim Paboucek, President Loadmaster Lubricants Hugo, Minnesota.