Sault gets another manufacturing plant

Less than two weeks after Flakeboard Co. Ltd. announced that it's building a new melamine laminating plant, there's word tonight that the Sault has landed another new manufacturing operation.

The new plant will be roughly comparable in size to Flakeboard's 45,000-square-foot operation, possibly larger, SooToday.com has learned.

However, it's expected to make extensive use of robotic welders and will therefore have a smaller initial workforce.

The plant will make large overhead factory cranes of the sort found in places like Algoma Steel and Traders Metals.

The deal is so far a handshake affair, with formal contracts still to be signed.

So details are sketchy.

Here's what we know so far:

- the deal for the new plant results from Sault Ste. Marie's recent trade mission to Northern Italy

- a manufacturer of overhead cranes based there has reached agreement in principle with Albert Giommi (shown), president of Sault-based National Supply Centre Ltd., in which National will get North American distribution rights to market the cranes

- that's expected to create two new industrial sales jobs at National Supply

- the Italian manufacturer has decided it would not be cost-effective to ship the bulky product from Italy, so arrangements are being made to have North American manufacturing and installation based in the Sault

- to produce the large cranes, a manufacturing plant of approximately 50,000 square feet will be needed

- the Italian company is currently negotiating with a local fabrication shop to build the cranes

- no local shop has sufficient space to do the job, so it's assumed a new facility will be built

- selling price for the cranes is around a half million dollars each

- National Supply has already lined up five sales, and first-year sales are estimated at $5 million

- based on that initial level of production, about eight employees would be needed to run the manufacturing operation, which would make extensive use of welding robots

No one has so far disclosed the identity of the Italian manufacturer, but the only maker of overhead cranes that SooToday.com has been able to identify near Northern Italy is ASCOM S.p.A., located in Formigine near Modena in the Elilia Romagna region, about 30 kilometres south of the Lombardy region visited by the Sault delegation.

Update: Crane plant might fit within existing Rector facility

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