Allied Titanium hits financing hurdles on way to Sequim expansion

SEQUIM — Allied Titanium has secured a machine to do some of the manufacturing work it plans for a location in Sequim, but it is facing difficulties getting banks to finance the expansion bid the company and city said would bring as many as 150 jobs to the area.

“We’ve been operating in China for years; we’re a 7-year-old company. But banks in the U.S. are looking at us as if it’s a brand-new business that’s just starting up, which makes it tough to get funding,” said Christopher Greimes, CEO of the Delaware-based company.

A month ago, the company announced plans to set up production lines for some of the 93,000 products it makes out of titanium on 5.5 acres of land it bought last December at 1400 E. Washington St.

Titanium is a strong, low-weight metal that is resistant to corrosion and is used regularly in the military and the aerospace and marine industries.

Allied Titanium makes a variety of products made out of the metal, from nuts, bolts and washers to pipe fittings, kitchen utensils and even jewelry.

Initially, Greimes said the company will be able to make about three-fourths of those products in Sequim, employing as many as 150 people.

With difficulty getting business loans to purchase machinery it needs to make those products, that expansion may be delayed.

“This doesn’t necessarily change what we’re going to do,” he said.

“We just have to get a little more creative about finding financing and are going to have to self-finance more than we thought.”

He has hopes of finding a “strategic investor” to help foot the $3 million the company needs to set up shop in Sequim.

“It’s frustrating, because I can walk into any car dealership — any car dealership — and walk out with a new car,” he said.

“But trying to get a machine that will actually make something, essentially spit out money, is like pulling teeth.”

Currently, Allied Titanium has eight people working in sales, quality control and distribution.

Production will still begin on some lines, as Greimes said the company was able to get a lease on a waterjet cutting machine that it will use to manufacture marine equipment and basic hardware products once it can get enough electricity to the site.

“The (Clallam) PUD’s working on that now,” Greimes said.

“We really want to get up and running, because the basic moral of this story is until we start making money manufacturing, no bank’s going to give us money to manufacture products.”

Allied Titanium has eight factories that are actively operating in China.

Greimes did say the company was contacted by several people looking for jobs after announcing Sequim as its Western U.S. headquarters in May, but has not yet made any hires.

________

Sequim-Dungeness Valley Editor Joe Smillie can be reached at 360-681-2390, ext. 5052, or at jsmillie@peninsuladailynews.com.

More in News

A mud slide brought trees down onto power lines on Marine Drive just each of the intersection with Hill Street on Monday. City of Port Angeles crews responded and restored power quickly. (Dave Logan/for Peninsula Daily News)
Downed trees

A mud slide brought trees down onto power lines on Marine Drive… Continue reading

Photographers John Gussman, left, and Becky Stinnett contributed their work to Clallam Transit System’s four wrapped buses that feature wildlife and landscapes on the Olympic Peninsula. The project was created to promote tourism and celebrate the beauty of the area. (Paula Hunt/Peninsula Daily News)
Iconic Peninsula images wrap Clallam Transit buses

Photographers’ scenes encompass community pride

Housing identified as a top priority

Childcare infrastructure another Clallam concern

Giant ornaments will be lit during the Festival of Trees opening ceremony, scheduled for 5 p.m. Wednesday. (Olympic Medical Center Foundation)
Opening ceremony set for Festival of Trees

‘White Christmas’ to be performed in English, S’Klallam

Olympia oyster project receives more funding

Discovery Bay substrate to receive more shells

Code Enforcement Officer Derek Miller, left, watches Detective Trevor Dropp operate a DJI Matrice 30T drone  outside the Port Angeles Police Department. (Port Angeles Police Department)
Drones serve as multi-purpose tools for law enforcement

Agencies use equipment for many tasks, including search and rescue

Sequim Heritage House was built from 1922-24 by Angus Hay, former owner of the Sequim Press, and the home has had five owners in its 100 years of existence. (Matthew Nash/Olympic Peninsula News Group)
Sequim’s Heritage House celebrates centennial

Owner hosts open house with family, friends

Haller Foundation awards $350K in grants

More than 50 groups recently received funding from a… Continue reading

Operations scheduled at Bentinck range this week

The land-based demolition range at Bentinck Island will be… Continue reading

Weekly flight operations scheduled

There will be field carrier landing practice operations for aircraft… Continue reading

Jefferson County lodging tax committee to meet

The Jefferson County Lodging Tax Advisory Committee will discuss… Continue reading

Restrictions lifted on left-turns near Hood Canal bridge

The state Department of Transportation lifted left-turn restrictions from… Continue reading