Cole Chemical helped a major manufacturer expand operations without taking on new debt by including the cost of storage tanks into product purchases.
For U.S. Farathane in Michigan, Cole Chemical paid for the design, engineering, and installation of two bulk hopper tanks to hold nylon resin. We included the construction costs into the cost of products we shipped them, amortized over a three-year period. This enabled the company to expand its production and take on a lucrative new contract with GM without any capital outlay or credit obligation. At the end of three years, the hopper tank was paid in full.
We provided a similar service to Port Lavaca, Texas, that saved BP capital outlays. BP needed a storage solution while it considered building a bulk storage tank. Cole Chemical included the lease costs of a tank car into product costs over three years. Cole Chemical also provided BP management with a financial analysis to justify the installation of a permanent tank.
BP was able to continue to increase production while justifying the upfront capital expenditure of an additional storage tank..
Cole Chemical can help improve your cash flow by eliminating capital expenditures associated with chemical storage. We can include the cost of tanks and equipment into the price of the chemicals we sell you, and amortize those costs over the term of our contract. You get the capacity you need without large, upfront outlays or long-term lease commitments.
Asset improvement without large capital outlay
Increased storage capacity and flexibility
Reduced risk of supply interruption
Expanded plant production and revenues
Improved cash flow
Reduced capital expenditures
No interest or debt
“Cole Chemical’sability to finance a new hopper tank
to accept the new contract we were awarded.” VP of Finance, Injection Molder