Tuesday, September 30, 1997

Zoltek continues to expand operation in Abilene

By ANTHONY WILSON

Staff Writer

Zoltek's expansion into Abilene is zooming.

Officials with the carbon fiber manufacturer were in town last week working with city officials on plans for a 10,000-square-foot nitrogen generation plant at the Greater Abilene Industrial District.

Construction of that facility will coincide with work on a 40,000-square-foot structure to house processes - milling, chopping and packaging - secondary to its manufacturing.

And site plans are already done for a 300,000-square-foot building to accommodate more production, a project that would dwarf the 100,000-square-foot shell Zoltek bought from the Development Corporation of Abilene in March.

"That ain't all bad," DCOA board chairman Tucker Bridwell quipped Monday.

"The success with Zoltek is already far greater than we expected. We knew they were a great company in an industry of seemingly endless expansion. While we know there's no such industry, they're bursting at the seams. This has paid off and the citizens are the winners."

The DCOA, stewards of the half-cent sales tax, lured Zoltek to West Texas with a $4.8 million incentive package last spring. In return, the St. Louis-based company committed to creating at least 250 jobs and investing $56 million in the city's fledgling industrial district.

Zoltek is already producing carbon fiber in its 100,000-square-foot building. Carbon fiber is a strong, lightweight, heat-resistant material used mainly by the aerospace industry, though uses are quickly expanding.

During the carbonization process, the fiber is blanketed with liquid nitrogen, providing an inert atmosphere that prevents oxidation.

Currently, Zoltek is trucking liquid nitrogen to Abilene. The new $5 million nitrogen generation plant will produce more than a million cubic feet of carbon per day, cutting the company's nitrogen costs by an estimated 50 percent.

"The savings will be substantial to us," said Dan Greenwell, Zoltek's chief financial officer. "We're planning a considerable expansion in Abilene, so this will have a reasonable payback."

Liquid nitrogen poses no environmental hazards.

Construction of the facility will begin before winter and take approximately 15 months, Greenwell said.

At the same time, Zoltek will be finishing its 40,000-square-foot addition. Dirt work has begun and the shell should be complete before winter weather strikes.

Work on the giant 300,000-square-foot structure, which would cover nearly 7 acres of land, also begins this fall. Greenwell explained the company wants a facility big enough to add up to 15 production lines as needed.

The expansion is sure to inject scores more jobs into the economy and millions to the tax base, though exactly how much remains unsure.

Greenwell raved about the Abilene workers Zoltek has hired and the local business climate.

"People there are candid and honest and want to do business," he said. "That matches our philosophy. We can't say enough good things about Abilene. We couldn't be more pleased. That's why we're making this added commitment."

Greenwell said the company may seek more DCOA assistance in the future. Bridwell's reply: If Zoltek can add jobs, "bring it on."

"Their sole mission is to be the low-cost producer of high-tech carbon fiber," Bridwell said. "They believe they can do that best in one place. All the forces necessary to make that happen are right here: climate, the work force, economic incentives. They're going to make it happen."

An added perk could be more tenants in the sprawling industrial district. Greenwell said the company has given the DCOA some leads on manufacturing prospects.

"Activity breeds activity," Bridwell said. "It's a boost when prospects see cranes in the air and dirt being moved."