Hill Wood Products to Expand

Ely, MI, January 2, 2007--Hill Wood Products plans to expand its flooring division and create up to seven new jobs in the process, according to the Ely Timberjay. The 60-year-old business got approval Thursday from the Iron Range Resources Agency for a $675,000 loan to support a nearly $1.8 million investment to produce custom flooring products. Company officials say the project will create seven new jobs and retain four others at a pay of $10 to $15 an hour plus benefits. As part of the loan agreement, Iron Range Resoruces will have a first priority lien on $700,000 of state-of-the-art equipment to be purchased for the expansion. The agency also has the personal guaranty of company President Steven Hill, who is the third generation of the Hill family to run the company. The project will complement and build upon the Hill Wood Products' successful sawn veneer business, according to company officials. Using the expertise gained over seven years of producing sawn veneer for other flooring, window and door manufacturers, Hill will manufacture high-value custom engineered flooring. In addition, the company will produce sawn veneer for shipment to offshore flooring manufacturers for use in other flooring products. By developing cooperation with established flooring producers in Asia, Hill officials say the company can produce high-quality flooring at market pricing from lumber and veneer, which is a by-product of its sawn veneer business. In its proposal for the loan, Hill officials said the company will fill a market niche that designers, architects and top-of-the-line flooring installers are requesting. "The flooring market will range from local retailers, larger regional retailers and distributors to nationwide do-it-yourself and floor covering chains," the proposal states. The company plans to introduce itself to the market through trade shows and national floor covering trade journals. Flooring sales will be supported by two full-time sales managers with over 40 years experience in the industry. Hill Wood Products will be the only custom-engineered flooring company in the Midwest. Hill Wood Products currently produces pallet lumber, wood dowels, sawn veneer, veneer panels, flooring, wood joinery biscuits, biomass fiber fuel, wood mulch and animal bedding. Although a majority of Hill Wood Products sales are domestic, an increasing share of its products are being exported to Europe and Asia.

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