Allendale Fibertech Corporation, Inc. | Application Preview
Allendale Fibertech Corporation, Inc. is seeking government grants to support various operational improvements and expansions within the company. The proposed funding allocation includes $100,000 for repairing the building's roof, updating the sprinkler system, and renovating facilities for employees. Another $80,000 is earmarked for purchasing raw materials, while $20,000 will be used for training and hiring staff.
The business aims to leverage its weaving equipment to produce Basalt- and Glass-based technical textiles. To build a comprehensive product portfolio that caters to specific market segments, they plan to introduce complementary products through either in-house manufacturing or external sourcing from their established contacts. Once they establish a foothold in initial market segments, the strategy entails targeting related segments to expand their offerings.
The rationale for approving the funding includes the company's ownership of a substantial 68,000 square foot manufacturing site free of liens, low operational costs, and experienced management. The facility's maintenance and tax costs are competitive nationally, and the labor costs are among the lowest in the country. The owner has over 30 years of expertise in product development, manufacturing, and sales, along with valuable connections on both national and international fronts, making the company a promising candidate for success.
In terms of competition, Allendale faces three main companies: Cotechno Group in Texas, BGF (Burlington Glass Fibers), and JPS (JP-Stevens). While Cotechno is seen as a strong competitor, the company believes that transportation costs to the Carolinas would hinder their ability to effectively compete. BGF and JPS are recognized for high-quality products but have high overheads and limited flexibility, positioning Allendale to offer more competitive pricing and innovation in the Southeast U.S. market.
The company claims a competitive edge through low production costs, extensive knowledge of technical products, and the ability to innovate. Their capacity to upgrade and adapt used equipment locally minimizes investment needs while allowing them to remain flexible and responsive to market demands. They have already produced unique samples of basalt fabric, showcasing their capabilities in technical textiles that other competitors have not achieved. Overall, Allendale Fibertech is poised for growth and aims to become a leading player in the technical textiles industry.
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General Information
Business Registration Number: 47-0975830
Location: Allendale, SC, United States
Length of Operation: 6-10
Number of Employees: 1-10 Employees
Annual Gross Income: Less than $100k
Annual Gross Expense: Less than $100k
Open to Loans: YES
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Funding Usage
$100,000 is for fixing the roof of the building and to update the sprinkler system inside the building, plus renovate facilities for workers. 80,000 is required for purchasing raw materials. 20,000 for training and hiring people.
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Business Plan
We plan to utilize our weaving equipment to produce Basalt- and Glass-based technical textiles. In addition, complementary products would be purchased to "round up" a product portfolio which fits certain market segments. Once a market segment is penetrated at a satisfactory level, additional and closely related market segments will be targeted with additional complementary products. Here, those products can be either manufactured with existing or newly to acquire equipment or those products can be purchased from various national and international sources with existing contacts we already maintain. Last, but not least, representing companies with synergetic products to further increase the product portfolio for capturing other markets but also to offer more products in the same market will help to achieve the overall goals. We own 68,000 sf manufacturing site which has no liens to it. The cost pertaining to the building (maintenance and taxes) are amongst the lowest in the national market, relative to the building size. The hourly labor cost relative to other states in this country is amongst the lowest, nation wide. The equipment on the floor is ready to be activated and paid for. The location is under economical distress and eligible to government grants. The extensive knowledge in this field by the owner (over thirty years) of experience in respect to product development, manufacturing and sales, plus his connections national and international, makes him a unique candidate to achieve these goals. It is fair to say that currently, the company operates at such low cost and with zero liens, that it is almost impossible to fail. The knowledge of the owner, along with funding will allow to manufacture and acquire products in the US-market at level of cost, which is almost impossible to undercut. This implies relatively high margins, relative to the textile industry.
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Self Identified Competition
1. The Cotechno Group is located in Texas. They weave and knit technical glass fibers. Some of their customers are located in SC. They are considered to be the most competitive in the market. 2. BGF (Burlington Glass Fibers), is one of the largest manufacturer of technical glass, but also other technical fibers, such as Basalt, S-Glass, Twintex. They are considered to have very high quality products and supplies military, aerospace and many other areas. Their price levels are considered to be high. 3. JPS (JP-Stevens). They weave and make composite materials. E-Glass, S-Glass, Quartz-Glass and other. They two are considered to have high quality products. Their price levels are considered to be high. In the cases of 2. and 3. , they have a very high overhead and can mostly work with bulk orders. They are not flexible and reluctant to changes. We consider BGF to be more innovative than JPS. In the case of 1. who we personally know, they will not be able to compete with us, as the cost of logistics to the Carolinas, which would be our primary market, will be making the landed cost to the customer too high. The quality we prepared is already approved by a local, large customer. We believe our quality and price levels are going to be the most attractive in the South East of the United States, while still allow decent profits. We believe we will be one of or even the most cost-effective company in terms of production. The deep knowledge in technical products, the creativity and in-house abilities to develop innovative products with new future possibilities, e.g. following the demand for high-tech fabrics pertaining to safe transportation of batteries or safe utilization of batteries, as well as our unique international connections, gives us confidence to accel. We have space to grow with minimal investments. We are the only company with the knowledge to purchase used textile equipment, overhaul it and adapt it to manufacture certain products in the USA. This at a level and quality, that expansion into additional equipment will be the lowest in the USA; thus keeping our competitiveness up, as the company grows. Furthermore, we do have the knowledge to automate "old" equipment and to upgrade it to a degree of modern equipment. The weaving machines we already own are capable of weaving any technical fiber which any company world wide could weave, as well. This allows for total flexibility to following any market which may promise success. We have woven samples of products (special basalt fabric) for companies, which no other has done before.
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Contact Applicant
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