American Cap secures $ 1.35 million loan for expansion – Business Journal Daily
WHEATLAND, PA – With assistance from Penn-Northwest Development Corp., American Cap Company LLC has secured a $ 1.35 million loan to expand manufacturing operations here and retain jobs.
American cap operates in over 200,000 square feet of space and manufactures compressed gas cylinder accessories (pictured above) and other cylinder components. The company is a division of the PTR Group, which includes ACCI Industries and PTR Tool & Plastics LLC.
The low-interest state loan comes from the Pennsylvania Industrial Development Authority, or PIDA, said Rod Wilt, executive director of Penn-Northwest. This requires a monetary counterpart of at least 50%, provided by the PTR, and a component of job retention.
American Cap began the expansion project in 2018, and the loan is the culmination of ongoing funding for the expansion of its mating product line at the Church Street plant here, said Richard Moroco, general manager by PTR Group. The $ 2,940,980 expansion project was completed in 2019 and will allow PTR Group to retain all 210 jobs in its divisions, “and even expand our jobs further,” Moroco said.
“As part of our discussions on the project with the governor’s action team, they suggested, as part of a grant we received for this expansion, that they were prepared to finance part of the capital. equipment costs associated with the expansion, ”said Moroco. “They were with us from the start of the project.”
The expansion includes the installation of a phosphate coupling line, a coupling paint line and additional ancillary equipment needed, Moroco said. The phosphate and paint work was originally contracted out to third parties. By expanding the internal capacity to include this work, “it definitely created a faster turnaround time on our part,” he says.
“When you rely on a third party, you have to adapt to their schedule,” he says. “This line gave us the flexibility to scale up or down based on orders.”
It will also allow American Cap to capitalize on the expected recovery as the country emerges from the coronavirus pandemic next year. American Cap primarily serves American customers in the tubular products industry for oil countries and has the capacity to produce approximately 50,000 fittings per month, he said. But the coronavirus pandemic has impacted that production by around 90%, he says.
The PIDA loan and expansion offer the company “the lead we need in this industry” to capitalize on the recovery Morocco expects to see in the second half of 2021, he said. he declares.
“This permanent funding provides a way to facilitate our ability to weather the pandemic,” he said.
Activity is still strong in PTR’s other sectors, he notes, particularly automotive, industrial gases and specialty gases, he says. The company provides custom injection molding jobs for the auto industry, which was operating at 125% of its fill rate before the pandemic, “so we’ve seen significant increases,” he says. “This company is very strong right now.”
PTR primarily serves customers in North America, but also ships some products to automotive customers in Europe and Asia, as well as industrial gas customers in South America, Europe and Asia, it notes. .
Morocco commended Penn-Northwest for helping to secure the loan, as well as PIDA and the Governor’s Action Team.
“It’s just great to watch them grow and keep moving forward,” says Wilt of Penn-Northwest.
This is the first PIDA loan granted to a local business this year, according to Wilt.
“This shows that as the main economic development agency in Mercer County, we are doing exactly what we are mandated to do, which is to match these funds with opportunities to stabilize employment in the county,” he said. he declares. “This only validates our mission. “
Image: PTR Group website.
Copyright 2021 The Business Journal, Youngstown, Ohio.