Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, March 16, 1991 TAG: 9103160142
SECTION: CURRENT PAGE: NRV-2 EDITION: NEW RIVER VALLEY
SOURCE: M.J. DOUGHERTY CORRESPONDENT
DATELINE: FLOYD LENGTH: Medium
"ABC Manufacturing will now be on the map, I guess," Charlie West, the company's founder, said Friday. ". . . We'll be able to shore up contracts and get into more of a production phase of manufacturing."
Details of how much the loan will be and from whom are still being worked out. West requested the town's help in obtaining $30,000 to $50,000 in operating capital at a council meeting Feb. 25.
Williams said Friday he hoped to sign a loan contract with a bank next week.
The company uses technology pioneereed in Europe to recycle cloth and wood fibers to produce a wide variety of products, ranging from packaging materials to furniture parts and trim and molding pieces.
West already has started test-marketing some items in search of contracts.
"There is some risk involved since this in an emerging market," said Floyd Mayor Gino Williams. "But I feel like we'll eventually be replaced on the note by the businesses whose recycling needs are alleviated by Charlie. If we can do that [help ABC gain credit], we'll get some good development."
Under the terms of the agreement approved Thursday, the town will guarantee a loan to ABC Manufacturing and the mayor must approve any release of funds by the lender. ABC also must take fabric waste produced in the town before taking cloth waste from elsewhere and the company will move to the town once it becomes practical.
Based on the contracts West is pursing, the company could eventually employ up to 20 people and process four times the fabric waste produced in Floyd.
West said he would develop a more detailed plan for the firm after he had a better idea of production needs. He hoped that would be within 60 or 90 days.
by CNB