ACTION REQUESTED:
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Communication from the City Manager with a Request to APPROVE a Loan from the City's REVOLVING LOAN FUND to CAST TECHNOLOGY INC., in the Amount of $250,000.00, and to Authorize the City Manager to Execute the Necessary Documents.
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BACKGROUND: Cast Technologies Inc. (Cast) is seeking to modernize their manufacturing operations in preparation for growth, and in response to a large contract they are fulfilling. Cast plans to invest $1.8 million in capital equipment to improve the melting, pouring, and molding processes in their foundries. The installation of machinery and equipment will take place in two phases, roughly 9 months apart at two foundries. The investment will include $820,610 for the No-Bake Foundry at 2718 SW Adams; and $860,000 for the Green Sand Foundry at 1100 SW Washington.
The modernization of Cast's operations will position the company for growth, build future capacity, improve productivity, and prepare them to meet growing demand. Of particular importance is the fulfillment of orders from Oshkosh Defense which has secured a Department of Defense contract to manufacturer 17,000 Joint Tactical Light Vehicles through 2023. The JTLV will replace the Hummer vehicle used by the military.
Company Background
Cast is a "centurion" company-operating for more than 100 years and serving more than 100 customers. Cast Technologies began its long history in 1887 as The Brass Foundry and Heating Company in Peoria, Illinois making railroad castings and pipe fitting for local customers. In 1909, the company was purchased by E. B. Hazen and J. G. Kasjens and changed the name to The Brass Foundry. In 1923, Mr. Kasjens died, and the business became the sole ownership of E. B. Hazen and his son George Hazen. Today the company continues to have an heir to the founder in its management--Jim Mehlenbeck, President and CEO.
The company has a rich history of supplying parts to several area companies, most notabl...
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