New Markets program investment
supports reopening of
Mexico,
Mo., brick factory and creates jobs in
rural
Missouri.
Advantage Capital
Partners has provided $9.75 million of a $21.9 million total project financing
for the effort to reopen a brick manufacturing plant in Mexico, Mo. Mid America
Brick & Structural Clay Products, L.L.C. will use the funding from
Advantage Capital, Rand Capital, Environmental Liability Transfer and other
investors to acquire, re-commission, and operate the former A.P. Green plant as
a face brick manufacturing facility. The plant will provide approximately 80
new jobs when fully operational in 2011.
“This is great news
for the rural community of Mexico,
Mo.,” said
Scott Zajac, senior managing director at Advantage Capital. “Our firm is proud
to be part of an effort to spur job creation and economic development right at
the time when confidence among homebuilders is on the rise.” Advantage Capital
will utilize both federal and Missouri
New Markets tax credits, designed to stimulate private capital for economic
growth in low-income communities, to help finance the project.
The A.P. Green
plant, which closed in 2002, was once one of the largest refractory brick
manufacturers in the U.S. Mid America Brick will use the facility to make face
brick for residential and commercial/industrial construction. The process for
manufacturing refractory brick and face brick is similar; therefore, the
re-commissioning and conversion costs of the A.P. Green plant will be
minimized.
The Commerce
Department reported last month that new housing starts rose nearly 6% in April,
a much faster pace than expected. The data was released following a report from
the National Association of Homebuilders that said builders’ confidence in
starting new projects is at its best level in two years, due to an increase in
home purchases in the first quarter.
“There has been a
tremendous amount of dedication to see this project through,” said brick
industry veteran and Mid America Brick CEO Frank Cordie. “I am extremely
pleased that we will be able to begin the work that will lead to redeveloping
the area, re-opening this plant and providing jobs in our community.” He
acknowledged the strong support at the local, state and federal levels of
government, including the Mexico City Council and state senators and
representatives.
Mid America Brick’s
central location is expected to give the manufacturer a competitive advantage,
due to the expected lower transportation costs associated with shipping bricks
to various locations throughout the Midwest.
In addition, all indicators are pointing to more demand for face brick due to
the extremely low inventories of brick as a result of a slowdown in the
building industry. When the plant is fully operational, it is expected to
produce nearly 60 million bricks annually.
Visit
www. advantagecap.com
for
more information.
