HBC barge recalls furloughed workers
HBC Barge LLC in Brownsville is recalling workers who were temporarily laid off while the company re-formed under new ownership. “We have three significant contracts we are finalizing relative to us moving forward,’ said Walt Kuhns, HBC Barge chief executive officer.
With those in hand, the company will have enough work for 150 people by year’s end, he said.
“The total of those contracts as we know them to be is about $3.5 million, which would provide a revenue stream through the remainder of this year and get us toward our employment goals as stipulated to Fay-Penn (Economic Development Council) and the banks of approximately 150 people.
“We have been calling people back as the contracts are finalized,’ Kuhns said.
In May, most of the workers at the former Hiller Barge Co. were laid off after the U.S. Army Corps of Engineers reassigned the major barge contract it had with the company because Hiller Barge filed for bankruptcy.
The company for many years made river barges under the banner of Hillman Barge Co. Trinity Industries of Texas purchased it and later closed the plant.
Wilhelm and Kruse bought the property in 1998 and began manufacturing fabricated steel, some of which was used to build PNC Park in Pittsburgh.
Wilhelm and Kruse formed the Metal Processing Co., which evolved into Hiller Barge.
However, after the Hiller Barge bankruptcy, Kuhns and partner Gabe Centofanti, president, and Scott Eicher, vice president, who were former employees of previous companies there, formed HBC Barge LLC. All three of the new owners are Uniontown natives.
“Within the context of those contracts and the Army Corps contract, we have a significant amount of work to perform,” Kuhns said. “We are also looking at a Navy contract. We will be talking with them today (Friday). We will seek congressional delegation help also to get it. If we are able to team with another entity, we would be able to have approximately four years worth of work with the government. Those are the initiatives that we are pursuing at present.”
The company was last owned by Condor Development LLC, an affiliate of Wilhelm & Kruse Inc of Rankin.
Financing assistance to Condor for purchase of the property in 1998 was provided through the Fayette Industrial Fund (FIF) and the state Department of Community and Economic Development (DCED) Pennsylvania Industrial Development Authority loan program (PIDA).
Fay-Penn, at its quarterly meeting Friday, announced the FIF and DCED approved the assumption by Hiller Barge LLC of the outstanding $420,000 PIDA loan balance. Fay-Penn, through its Fayette Capital Loan Fund, approved the assumption of the outstanding $175,000 loan balance. In addition, Fay-Penn approved a $500,000 certificate of deposit pledge through its Loan Guarantee Program to assist the company in securing a working capital bank line of credit.
“This protects our collateral and funding in the project. We are very interested in working with the new owners. It’s good to see jobs being kept in that part of the county,’ said Fay-Penn President Mike Krajovic.
The new owners, who combined have more than 75 years of experience in barge fabrication and repair operations, expect to retain the 115 employees at the former company and add 35 more.
“Having previously worked at this facility for prior owners Hillman Barge and later for Trinity Industries, I was well aware of the capabilities of both the facility and the experienced work force,’ Centofanti said.
Kuhns, who was heavily involved in securing financing for the purchase, said, “The assistance we received from Fay-Penn, especially Bob Urban, director of finance, in negotiating with the PIDA staff was essential in structuring this deal to make it work for us. …We greatly appreciate the outstanding support and cooperation offered to us by PIDA, FIF and Fay-Penn.”
“We welcome the new owners of this facility and thank them for the economic opportunities and investment that they add to Fayette County,’ state Sen. Richard Kasunic (D-Dunbar)said.
“The investment in Brownsville, the most distressed area in Fayette County, will greatly impact the economic viability and vitality of this community,’ state Rep. H. William DeWeese (D-Waynesburg) added.