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HISTORY OF BUSINESS Dan Karat started this business approximately three and one half years ago by processing the transmissions on his father's farm. At the beginning it was merely an effort to supplement the income from his full-time Job. When starting out he was using a small purchased melt furnace. By February of 1986, the demand for recycling aluminum was sufficient so that he quit his full-time Job and worked st this bus/ness full-t/me. In late 1986 and early 1987, Dan hsndbuilt a larger, more efficient melt furnace that could handle the quantities of material that were now being processed. During the spring, summer and fall months the £urnace generally operated around the clock. There were two shifts of 2-3 employees tearing down the transmissions. In addition, the community was learning of the service he was able to provide in separating aluminum from other metals. As a result, he was starting to pick up industrial aluminum waste and processing that on a contract basis ~or industrial locations. By January 1, 1988, the aluminum processing aspect o5 the business was separated out into one corporation, and the transmisssion recycling business was separated out into another corporation. Since early 1988, Dan has been aggressively looking for homes both of these businesses that would comply with the zoning and permiting requirements ~or each business. In September of 1988, Dan moved Danny's Trannys, Inc. into s purchased building in Hassan Township (Rogers, MN). In addition to a significant investment in the building there has also been significant investment in the improvements to the building, including hard-surfacing the parking lot, completing construction of the building, and bringing the building up to building code standards. Also, the whole site is being cleaned up by removing the outside storage that was left by the previous owner. Danny's Trannys, Inc. is now processing approximately 1300 transmissions each month at that site. By Fall o£ 1989 the driveway and remaining Rogers site will be hard-surfaced. The completed as soon as weather permits. parking areas at the landscaping will be During the summer of 1988, Dan had a rotating melt furnace custom built to meet the specifications for this operation. That furnace included a water filtration system. However, that water filtration system has never operated satisfactorily and is now being replaced with a bagger house.