MONROE - Orchid International in Monroe will be expanding production this fall with the help of city and county loans.
The City of Monroe Revolving Loan Fund Committee voted unanimously Tuesday to recommend Common Council approval of a $300,000 loan. The council will take up the issue July 15.
The county just approved a $200,000 loan for Orchid last week, according to Green County Clerk Mike Doyle.
The loans are part of Orchid's $4.7 million injection of new investment into plans to increase production and process capabilities in manufacturing new components and assemblies for electric motors in hybrid electric vehicles, according to Curtis Wiemann, divisional controller at Orchid International.
Orchid started the five-year program in early 2014, with General Motors among its major customers.
The Bank of New Glarus has committed to refinancing Orchid Monroe's real estate debt, and Orchid Monroe "has ample access to capital equipment," according to the company's city loan application. The loan will help meet the costs of "unfinanceable development and other soft costs."
The city's revolving loan fund requires the creation or retention of one job per $20,000. Wiemann said the project expansion is expected to create 23 new positions. Orchid has up to 24 months to create the new jobs.
The city loan is offered at 3 percent interest, with a six-month deferred payment option, a seven-year amortization of equipment and collateral on the company's real estate. Wiemann expects the company will take out the full loan amount in September.
The Monroe facility was awarded its TS16949 certification in November, making it more competitive and eligible to quote new automotive parts and related work in 2014 and beyond.
The technical specification certification means the company has met international standards that define the quality management system requirements for the automotive supply chain design and development, production and installation and service of automotive-related products.
Orchid was granted its certification after being audited and verifying their system, and a year-long test of its capabilities by shipping quality parts to General Motors for the automotive company's transmission assembly plant in Baltimore.
Orchid International is a supplier of engineered metal products, electric motor technology and automotive assemblies and components.
The City of Monroe Revolving Loan Fund Committee voted unanimously Tuesday to recommend Common Council approval of a $300,000 loan. The council will take up the issue July 15.
The county just approved a $200,000 loan for Orchid last week, according to Green County Clerk Mike Doyle.
The loans are part of Orchid's $4.7 million injection of new investment into plans to increase production and process capabilities in manufacturing new components and assemblies for electric motors in hybrid electric vehicles, according to Curtis Wiemann, divisional controller at Orchid International.
Orchid started the five-year program in early 2014, with General Motors among its major customers.
The Bank of New Glarus has committed to refinancing Orchid Monroe's real estate debt, and Orchid Monroe "has ample access to capital equipment," according to the company's city loan application. The loan will help meet the costs of "unfinanceable development and other soft costs."
The city's revolving loan fund requires the creation or retention of one job per $20,000. Wiemann said the project expansion is expected to create 23 new positions. Orchid has up to 24 months to create the new jobs.
The city loan is offered at 3 percent interest, with a six-month deferred payment option, a seven-year amortization of equipment and collateral on the company's real estate. Wiemann expects the company will take out the full loan amount in September.
The Monroe facility was awarded its TS16949 certification in November, making it more competitive and eligible to quote new automotive parts and related work in 2014 and beyond.
The technical specification certification means the company has met international standards that define the quality management system requirements for the automotive supply chain design and development, production and installation and service of automotive-related products.
Orchid was granted its certification after being audited and verifying their system, and a year-long test of its capabilities by shipping quality parts to General Motors for the automotive company's transmission assembly plant in Baltimore.
Orchid International is a supplier of engineered metal products, electric motor technology and automotive assemblies and components.