Super Steel, LLC, formerly known as Super Steel Products Corporation (SSPC), had been in existence since 1923, providing contracted manufacturing services to customers in the industrial, construction, agricultural, and defense markets, and specializing in providing metal fabrication to the rail industry. The company was heavily impacted by the economic downturn and was forced to le for receivership in March 2010.
The closure of this facility would have materially and negatively impacted the area based on the number of jobs that would be lost both directly and indirectly. Economic development professionals in the regional and most notable for the City of Milwaukee deemed this a high priority. Structuring a capital stack that would make acquisition and turn-around nancing viable was a key item in attracting a buyer.
FIRE underwrote a $15.5MM allocation, supporting the acquisition, operational upgrades and working capital requirements of the re-launch of the company. The NMTC allocation provided allowed Super Steel, LLC to retain its 223 current, projected initial growth of 80 additional permanent quality jobs at an average annual anticipated wage of $36,000 within the rst 12-18 months, the majority of these jobs available to low income persons. The owner of the company committed $12,750,000 in equity and FIRE provided the remaining $2.75 million in allocation after reserves for monitoring, legal expense, and placement fees.
Super Steel, LLC’s focus is on reemerging as a best in class contract manufacturer by building upon its skills in the rail industry and pursuing contracting services with leading Original Equipment Manufacturers (OEMs). Since closing on this transaction, the company has exceeded its original employment goals, and has now hired 207 new employees, the majority of which were low-income at time of hire.
The project is located in a designated Browneld area and in a highly distressed project and meeting this component of the CDE’s mission. The project also retained 223 quality manufacturing jobs and has added an additional 207 jobs (117 in excess of original estimates), providing employment for 430 persons. The jobs provided are predominately accessible to low-income persons with high school education and on-site training. This directly meets the CDE’s goals of providing quality employment opportunities to low-income persons and/or low-income community residents. The company also committed to local hiring practices and internal training which also specically aligns with FIRE’s mission and goals
Total Project Costs $15,500,002
FIRE NMTC Allocation $15,500,000
NMTC Investor JP Morgan Chase
Closing Date February 2011
FIRE welcomes requests for NMTC’s throughout the year as we work to maintain an active pipeline of viable and potential projects throughout the region.