Mainebiz

V O L . X X I I N O. X V I I J U LY 2 5 , 2 0 1 6 8 B U S I N E S S M A I N E B U S I N E S S M A I N E B U S I N E S S N E W S F RO M A RO U N D T H E S TAT E New investment sparks a move to Saco S A C O — Saco River Dyehouse recently completed its move into larger quarters at 34 Spring Hill Road in Saco from its old space across the river in Biddeford. In a deal finalized June 7 and brokered by Greg Hastings and Tom Dunham from NAI The Dunham Group, a 35,550-square-foot industrial build- ing was purchased by a separate investor for $2.133 million. Saco River Dyehouse moved into a 24,000-square-foot portion of the building and holds a three-year option to buy the entire property. "It's clean, it's well-located, it's really excellent space," said the company's managing director, Claudia Raessler, a 2014 winner of the Mainebiz "Women to Watch" award. "I can't say enough about it." The need for new space was driven by the purchase of $1 million in new equipment, which replaces machinery that dates to the 1930s. Saco River Dyehouse acquired the equipment and a list of clients in 2012 from a Massachusetts dyehouse. "It was a niche dyehouse serving unique needs in the market, and there were a number of companies dealing with it," said Raessler. At the time, Raessler and her husband, who produced a small line of yarns from their farm, were clients. "So in a 'wild moment,' we said, 'Let's move the dyehouse to Maine,'" she said. They found vacant space in a textile-manufacturing section of a historic mill formerly owned by Westpoint-Stevens in Biddeford. "We leased 18,000 square feet, installed the equipment and started dye- ing," she said. By the end of 2012, Raessler and her husband realized they needed to ramp up operations with new technology and environmentally friendly equipment. "Otherwise, we were going to go broke, not because we didn't have customers but because our cost of operations and our inability to serve a broader market were real hurdles to our success." For example, the old equipment consumes 40 to 60 gallons of water to dye one pound of yarn; new technology takes four to six gallons for a pound of yarn. Today, the company dyes approximately 8,000 to 10,000 pounds per month. With gross sales of about $700,000 in 2015, Raessler projects sales of just under $3 million by the end of 2017. Saco River has 15 to 18 employees. One of the last of the dyehouses The dyehouse, she said, has a unique place in the U.S. textile industry. There just aren't many dyehouses remaining in the United States. "Dyehouses took a hit, as the whole industry sector did in this country over the last 25 years," she said. "Everybody still dyes cotton, linen and wool, which we do, but you have to position yourself to dye technical textiles — new fi bers used in everything from industrial ropes to performance apparel," she said. "All of these yarns and threads need new color, and that's what we do. Our byline is, 'We put color on yarn.' It's that simple." With $1 million in new equipment, the company needed more space. To that end, Coastal Enterprises Inc. put together a real estate/manufactur- ing partnership with an outside investor, White Rabbit LLC, whose principals are Kevin Bunker and Traverse Fournier. White Rabbit purchased the Franklin Fueling Systems plant, which dates to 2008. Franklin Fueling continues to occupy part of the space, while Saco River has over 24,000 square feet and invested about $180,000 for building improvements. CEI, the Maine Technology Institute and the Biddeford-Saco Area Economic Development Corp. put up $660,000 in loans along the way. "We wouldn't be here if it hadn't been for the economic development resources that are available in Maine," Raessler said. Because the company had just invested in new equipment, it would not have been able to purchase a new building at the same time. The three-year option to buy gives the company "time to get relocated, get all this equipment up and running and then buy the building in three years," said Raessler. — L a u r i e S c h r e i b e r NOW's the time to buy! NOW's the time to refinance! RIGHT NOW is the time to contact Saco & Biddeford Savings. Apply for a loan online or at any of our convenient branches. SACO BIDDEFORD WESTBROOK SCARBOROUGH SOUTH PORTLAND OLD ORCHARD BEACH "at's My Bank!" NOW's the time to build! NOW's the time to make it happen! N O W 's N O W 's 's ' t h e t i m e ! www.sbsavings.com 1-877-SACO-BID (722-6243) www.norrisinc.com 1-800-370-3473 info@norrisinc.com P H O T O / C O U R T E S Y N A I T H E D U N H A M G RO U P Saco River Dyehouse took over a 24,000-square-foot section of 34 Spring Hill Road in Saco.

• Cover