Posted April 08, 2008

CHATTANOOGA, Tennessee -- Designed Alloy Products, Inc. has announced plans for a multi-million dollar expansion that will help reclaim one of the largest industrial sites in Chattanooga, contribute to the revitalization of the Alton Park community and add many new jobs over the next three years.

The company currently operates a metal scrap sorting and processing facility on Riverfront Parkway. Its output is then shipped to other firms for melting into cobalt and nickel-based alloys, stainless steel and tool and alloy steels.

The expansion into the 96,000-square-foot Niagara Steel building on Alton Park Boulevard will allow Designed Alloy Products to enlarge its existing scrap and raw material operation, increase production efficiencies and permit future business expansion.

“We have already started bringing new people on board for expanded operations, and the pace of our hiring will accelerate as we progress through the relocation and expansion of our facilities during 2008,” said Cristi Hoffman, principal owner and CEO of Designed Alloy Products.  “During the site selection process, I saw why so many people on our team like Chattanooga so much.  We see this project as a win-win for both our company and the people of Chattanooga.”

The company recently purchased the former Niagara-LaSalle facility and is readying the approximately 40-year-old facility for a major business upgrade. The new operation is adjacent to the new FedEx Ground distribution facility, which is located on a site that a Birmingham businessman had once targeted for re-development as a landfill.

According to Chattanooga Mayor Ron Littlefield, the investment by Designed Alloy Products continues the reinvigoration of an area that offers many possibilities for new development.  “We’re very pleased to have Designed Alloy Products expanding its operations in Chattanooga and contributing to the redevelopment of the Alton Park area,” said Littlefield. “Along with FedEx, Designed Alloy Products, Inc., will be providing jobs while significantly re-developing and enhancing this part of Chattanooga.”

“We thank Designed Alloy Products for continuing its commitment to Chattanooga by investing in a new facility and creating new family wage jobs,” said Hamilton County Mayor Claude Ramsey. “We look forward to continuing to work with Designed Alloy Products as the company grows.”

Maria Noel, manager of the Renewal Community program, pointed out that by purchasing property in the Renewal Community Zone, Designed Alloy Products is eligible for a variety of federal tax incentives. “This is another step forward in the reclamation of former industrial sites – a process which is good for the business and for the neighborhood in which they’ve located,” Noel said.

According to Trevor Hamilton, vice president of economic development for the Chattanooga Area Chamber of Commerce, Designed Alloy Products spent much of 2007 evaluating potential expansion sites in Chattanooga and at its other existing locations in other parts of the country. “The company’s Chattanooga-based team was an invaluable partner in the effort to ensure that our community retained these jobs and won the investment that is driving Designed Alloy Products’ growth in our market,” Hamilton said.  “This project is another example of how a strong focus on existing industry provides opportunities to save jobs and create new ones.”

“Our operational needs demanded that we expand our metal processing operations here in the southern United States,” said Chuck Barrett, general manager of Designed Alloy Products. “We had reached a point where our existing facility in Chattanooga could no longer support the volume of business we have. The old facility was landlocked and not optimally laid out for our work processes.”
 
 According to Barrett, being located in Chattanooga provides clear strategic advantages.  “We wanted to stay in this market since Chattanooga has many of the factors we value as a manufacturer,” Barrett said. “These include a strong, relevant labor force, low-cost electric power, supportive government leaders and many business partners in this region.”

This expansion will accomplish several business objectives for Designed Alloy Products. The new location is significantly larger than its current location and is an all-year, all-weather site. Indoor processing will provide a considerable improvement in worker productivity and create a more worker-friendly environment, Barrett said.
 
Designed Alloy Products will be making a number of improvements to its new facility. Office renovations, installation of new equipment, power upgrades and other improvements are planned over the next few months.

 “We’re trying to transition the movement of equipment so that it does not adversely impact current customer needs,” said C.T. Hardison, head of sales and operations, Southeast Division of Designed Alloy Products, in Chattanooga. “We’re also using this opportunity to materially upgrade much of our equipment in the analytical, materials handling, storage and processing areas. The move to a bigger, better site has been a real morale boost for our team here in Chattanooga.” 

Designed Alloy Products is a premier source for quality master alloys with operations throughout the U.S. that serve a global customer base.

The company was founded in 1993 by John Hoffman and has grown into a substantial player in the specialty alloy market. With headquarters in Aurora, IL and facilities in Pennsylvania, California and Oklahoma, the company serves foundries, aerospace, automotive, dental and other markets.

For more information about Designed Alloy Products, contact:

Kevin Maher
Designed Alloy Products, Inc.
601 West New York Street
Aurora, IL 60506
Phone: 630-906-2750