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processes that could be vertically integrated are punching and powder-painting, both of <br />which are currently outsourced. <br /> <br />Our third opportunity for growth is to add additional sheet metal capabilities. Some of our <br />current customers have needs for sheet metal parts such as brackets, etc. which we do <br />not have the capability of doing in-house at this time. They would like to buy these parts <br />from us since they know they can count on our committed delivery dates and have had <br />problems with their current sheet metal suppliers. Adding these capabilities would require <br />more equipment and personnel, which we do not currently have the space for. These <br />capabilities would also allow us to fabricate some of the components (mounting feet, clips, <br />etc.) that we currently purchase from others. <br /> <br />We propose to start construction this on a 15,000 - 16,000 square foot building. This <br />would allow us to support increased sales, vertically integrate shearing and punching, add <br />additional sheet metal capabilities, add warehouse space to support the operation, and <br />add more shop employees. <br /> <br />We plan to expand this building up to 30,000 square feet in 5-7 years to add additional <br />capacity and a powder-paint line to paint our enclosures. All storage of product and <br />materials will be stored inside this facility. See the attached sheet for our expansion <br />plans. <br />I hope this gives you some information on our operations and our future plans for our <br />company. We look forward to partnering with AEC and the city of Ramsey to. make this a <br />project we can all be proud of and is an asset to AEC Energy Park, the city, and the <br />surrounding community. <br /> <br />Sincerely, <br /> <br />Michelle Kalantari <br />President, Direct Enclosures, Inc <br /> <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> i <br /> I <br /> I <br /> I <br />I <br />I <br />I <br />I <br />I <br />I <br />! <br /> <br />/bo <br /> <br /> <br />