Jyco gets $6 million boost from Investment Quebec
Jyco Sealing Technologies Inc. has secured a $6 million (US$4.8 million) loan from a Quebec agency to help it compe...
Jyco Sealing Technologies Inc. has secured a $6 million (US$4.8 million) loan from a Quebec agency to help it compete and succeed during the economic downturn.
The Dexter-Mich.based thermoplastic vulcanizate sealing company announced that it qualified for the loan from Investment Quebec to “preserve and create jobs” at its primary North American factory in Sherbrooke, Quebec.
The money comes from the agency’s Renfort Program, which helps businesses experiencing temporary difficulties during the current economic situation. A company that carries out its main activities in the province is eligible if it has been in operation for at least three years; has generated positive funds at least two of the last three years with a positive total during that period; and has demonstrated its liquidity problems are temporary and profit outlook good.
“We are delighted by Quebec’s quick action, and proud of the confidence they have shown in our future,” said Sam Jyawook, Jyco’s founder and CEO. “We have great plans for our company as well as the surrounding community. Their support is exactly what we need, when we need it, to stabilize and grow our workforce.”
Companies borrowing money from the Renfort Program have up to 10 years to repay it, according to Investment Quebec.
Jyco operates 16 production lines at the Sherbrooke plant, which opened in 2000.
The reinforcement of the loan has helped Jyco recently gain about US$3 million in new sales, Jyawook said. Some of that new business will come from former customers of Nicholas Plastics LLC, an Allendale, Mich.-based plastics extruder, which announced in February it will close its operations, primarily because of the downward spiral of the automotive market.
Three years ago, about 95 per cent of Jyco’s TPV sealing business was in the automotive sector, Jyawook explained, but with the decline of demand in that market, the company has reduced the share to 75 percent.
In 2007, Jyco began to expand their customer base beyond automotive applications, to construction, appliance and other industries. However, much of their manufacturing was still dedicated to automotive systems, and the downturn of this industry seriously cut production demands, Jyawook said.
Jyco employs between 250 and 300 people total at its Sherbrooke site, its Dexter headquarters and engineering center and international sites in Belgium and Japan.