News and Events

On Thursday, January 26, 2012, Jeff Borling represented the region at the 2012 Minnesota Green Chemistry Conference, delivering a presentation highlighting the many opportunities available in northeast Minnesota and northwest Wisconsin for chemical and fuel companies utilizing renewable wood resources to produce value-added goods. Borling noted the closure of the three Ainsworth wallboard factories in northern Minnesota as a clear opportunity for these growing companies, both in the advantage of leveraging existing assets at the plant sites themselves, and in the advantage of recapturing the un- or under-utilized timber resources no longer being harvested for these production facilities. 

 

An overview of the progress made by APEX and the Itasca Economic Development Corporation (IEDC) in redeveloping one of these plants as the Itasca Eco Industrial Park was also provided, with high-level information regarding the integrated development concept IEDC and APEX are leveraging to promote the growth of synergistic wood products companies at this location. As talks progress with a potential anchor tenant at the site, this site could offer significant competitive advantages to co-located companies seeking to produce green chemicals and other value-added goods from wood, or from the byproducts generated by the anchor tenant. 

 

Aditional speakers at the conference included representatives from Dow Chemical Company, SC Johnson, Ecolab, Segetis, Reluceo, the Minnesota Dept. of Employment & Economic Development (DEED), and the BioBusiness Alliance of Minnesota, among others.  These and many other well known companies are in the process of developing and/or bringing to market exciting new products that could very well be made from wood feedstocks in the near future. 

 

These products include plastics, reinforced composites, pigments and inks, paint additives, adhesives - even compostable baby diapers - all of which would be a welcome addition in helping to diversify the forest products industries of Minnesota and Wisconsin and all of which would be welcome additions as manufacturing processes housed at the Itasca Eco Industrial Park.

 

To learn more about Minnesota's Green Chemistry activities or the opportunities available for your business at the Itasca Eco Industrial Park, please contact Jeff Borling: 218-326-9411 x.23

 

Over the past several weeks, Per Carlsson, owner of ABioNova, a Swedish biomass boiler manufacturer, has been on site at the Wolf Ridge Environmental Learning Station in Finland, Minnesota, overseeing the installation of his BioMax Commercial Boiler system, which were introduced into the U.S. market in early 2010. APEX has worked together with the BioBusiness Alliance of Minnesota to assist ABioNova in all aspects of its U.S. expansion strategy, from identifying potential customers and market opportunities to establishing contract agreements with local companies capable of providing manufacturing support, sales and distribution strategies, installation and service agreements, and more. 

 

In partnership with Italian designer D’Alessandro Thermomeccanica Company of Miglianico, Italy, ABioNova has developed a biomass boiler system that ranges in size from 440,000 to 6,800,000 btu/hour output capacity.  These unique systems use the latest in computer-controlled technology to maintain the highest possible efficiency, no matter what type of biomass fuel is burned - woodchips, wood pellets, etc. To bring these systems to the U.S. market, ABioNova brought on WoodMaster out of Red Lake Falls, MN as its sales and distribution partner and set up a contract with Superior Steel in the Twin Ports to provide manufacturing support.

 

Although the team has already installed several boilers in the northeastern U.S., the installation in Finland, Minnesota represents the first project in the APEX service territory. This installation involved two boilers, which allows for greater handling of peak and off-peak loads. The smaller boiler offers a capacity of 1.2 million BTU/hr and the larger about 2.2 million BTU/hr. Although these systems can burn wood chips, this installation is set up to burn wood pellets, with a 20-ton pellet silo on site. 

 

In the coldest part of the year, 20 ons of wood pellets would provide about 10 or so days of heating for this customer. The pellets are being supplied by Great Lakes Renewable Energy of Hayward, Wisconsin and estimates suggest that these pellets will offer a 50% cost savings over propane per million BTU. ABE Systems of Duluth was the prime contractor on the install and may provide similar support for additional installations being considered in this region.

 

This project tells a great story about the ability of biomass and wood pellet fuels to allow regional economies to capture as much energy spending within their local communities as possible. Instead of paying twice as much for propane and seeing almost all of those dollars flow immediately out of the region, Wolf Ridge will spend less for fuel harvested and produced in northern Wisconsin, they will feed that fuel into boilers manufactured in Superior, and the boilers were installed and will be serviced by Minnesota companies. All of this leads to new economic activity and jobs in our region.

 

On December 16, 2012, Joe Broking, President & CEO of Itasca Economic Development Corporation (IEDC), met with Rob West, President & CEO of APEX to discuss the results of the two organizations’ collaborative efforts over the past two years and to renew the contract which defines the agreement. Under the terms of this arrangement, APEX provides a fulltime staff person to serve as a member of the IEDC team in Grand Rapids, with an objective of driving new economic activity and job growth in and around Itasca County.

The contract with APEX, initiated in February, 2010, came on the heels of the IEDC’s decision to purchase the former Ainsworth oriented strand board manufacturing facility in Grand Rapids and has provided a necessary level of support as IEDC completed a period of management transition and worked to redevelop the former board plant for future use. As such, much of the team’s work over the past two years has been focused on redeveloping the site as the Itasca Eco Industrial Park (IEIP), a premiere location for world-class manufacturing operations in the heart of North America.

In marketing this property to new and expanding businesses, the APEX/IEDC team sought to attract companies which would leverage the region’s extensive timber resources, so as to regain not just the production jobs lost through the closure of the Ainsworth operation, but also the logging and supplier jobs associated with the timber demand of the former OSB mill.

Given the sustained downturn in the nation’s housing market and flat growth reported in the region’s paper/pulp mills, the team quickly set its sights on the advanced biofuels, biochemical and biopharmaceutical industries, as among the few areas of notable growth in the nation’s forest products sector. An extensive marketing plan was developed to penetrate these industries and today, the team is pleased to report that a memo of understanding has been executed with one of the world’s leading advanced biofuels producers. Formal agreements are expected to be secured sometime in 2012.

Today, as the APEX/IEDC team looks to renew its contract for the next two years, the 2012-2013 marketing plan has been expanded to focus on a number of other opportunities in and around Itasca County, beyond the work which continues to progress at the IEIP. The APEX/IEDC team will continue its efforts to close the deal with the potential anchor tenant and to market the remaining land parcels to other synergistic businesses, but 2012 will also see the rise of new initiatives aimed at supporting the large mining-related projects in Itasca County and expanding the IT/Computer Sciences sector in the Grand Rapids area.

If you would like to learn more about APEX’s work in Itasca County and across Minnesota’s Iron Range communities, please contact Jeff Borling at: (218) 326-9411, ext. 23

On Wednesday, October 26, 2011, Elissa Hansen, APEX Director of Business Development attended the Minnesota Chamber of Commerce’s 2011 Manufacturers Summit in Minneapolis. The Chamber estimates that Minnesota manufacturers contribute more than $30 billion to the state's economy, representing 17% of the state’s gross domestic product. With nearly one in seven jobs in Minnesota tied to the manufacturing industry, Minnesota manufacturers are clearly the backbone of our economy.

 

As global pressures and changing demographics present new challenges for manufacturers, the Minnesota Chamber of Commerce's 2011 Manufacturers Summit provided an insightful glimpse into the future of this dynamic segment of our economy. The event was well attended and the attitude among the manufacturers present was generally optimistic.

 

Major takeaways for our local manufacturers included eight "best practices" designed to keep their operations thriving and growing in today’s highly competitive global marketplace.  These include:

 
1. Invest in training your workforce.
2. Invest in automation and high-tech.
3. Create a culture of continuous improvement.
4. Implement automated performance tracking.
5. Measure procurement and on-time delivery.
6. Manage vendor relationships to reduce costs.
7. Pass on pricing increases.
8. Expand into international markets.

It comes as no surprise to those of us in northeast Minnesota and northwest Wisconsin that investing in a well trained, productive workforce is the #1 key to success in the manufacturing sector. Technologically Advanced Worker’s (TAWs) were stressed in various parts of the day’s discussions at the 2011 Manufacturers Summit, with speakers providing multiple examples of successful workforce training programs, including the Arrowhead's very own Applied Learning Institute.  

 

Other programs cited include "Dream !t Do !t" and the Obama Administration’s Board on Jobs & Competitiveness Council’s Right Skills Now program. In one way or another, all of these programs are focused on increasing the number of people entering the workforce in skilled production, technology, engineering, and other industry-focused areas.

 

To learn more about workforce development initiatives and other efforts to support manufacturing businesses in northeast Minnesota and northwest Wisconsin, please contact Elissa Hansen at: (218) 740-3667

 

Or, if you are a manufacturer who needs focused strategic support as you grow your business and compete in the global marketplace, consider contracting with the APEX Strategic Resources Group.  Contact Peter Miller today to learn more.

 

On Thursday, October 25, 2011, Jeff Borling, APEX Director of Itasca Business Development, joined a delegation of regional business and community leaders to testify before the MPCA Citizens' Board in support of US Steel's expansion of the Keewatin Taconite plant in northeast Minnesota. The hearing centered on the approval of two water quality permits associated with the expansion project, which involves the re-commissioning of a portion of the mining operation that was shut down around 1980.

 

Borling represented APEX and IEDC in describing how economic and environmental issues are often inextricably entwined in Minnesota's natural resource-rich Arrowhead Region, resulting in a history of sound planning and development which has balanced the need for jobs against the desire to protect the natural environment in this beautiful place we call home. 

 

In considering the transparency with which US Steel has approached this project and the significant investments the Company has made in deploying new, cutting-edge environmental technology in the State of Minnesota, the majority of testimonials applauded the project and welcomed the much needed jobs and economic activity it will produce. Testimonials were also provided by Rep. Carly Melin, District 05B; Senator Tom Saxhaug, District 03; Jeremy Smolich, Plant Manager, Keewatin Taconite; Bud Stone, President, Grand Rapids Area Chamber of Commerce; and Mayor Tom Sampson from the City of Keewatin, among others.

 

After careful deliberation, the MPCA Citizens' Board approved the water quality permits and said that together with the air quality permit approved by the board in September, these actions "show a way forward to protecting the environment while still providing for needed economic expansion." Approval of the air and water permits means the MPCA has removed one of the last remaining barriers to expansion of the Keewatin Taconite operation. All that remain are two wetlands-related permits, one from the MPCA and one from the US Army Corps of Engineers, both of which are expected to be issued sometime in the next 6 to 10 months. 

 

Once final permits are approved and the expansion project begins full-steam, estimates show the potential to create more than 120 permanent high-paying jobs in the Keewatin area, along with 500 temporary construction jobs over the next several years.  More importantly, the approval of these permits shows that northeast Minnesota continues to value the culture and communities built around the region's mining industry - past, present and future.

 

In the meantime, APEX and IEDC will continue to engage with the large mining projects currently underway in Itasca County and across the Iron Range, lending our support in any way possible.  Other activities include playing a supportive role in workforce development and training initiatives through our members and other partners, and we are also actively working with a number of mining suppliers and related manufacturing operations seeking to expand or relocate their operations into northeast Minnesota. 

 

If your business is poised to grow alongside Minnesota's bustling mining and manufacturing sector, please contact Jeff Borling today to find out how APEX and IEDC can support your success: (218) 326-9411 ext. 23

       

On Thursday, September 29th, 2011, Elissa Hansen, APEX Director of Business Development attended and exhibited at the Arrowhead Manufacturers & Fabricators Association (AMFA) Energy Conservation for Industry & Tabletop Trade Show. This one-day conference was held at the Holiday Inn in Duluth and provided tips and advice on how to conserve energy in lighting, motors/drive, compressed air, boilers and more. Industry-leading experts advised the group on strategies for getting an energy conservation project approved and how to realize a meaningful return on investment in conserving energy costs. The Tabletop Trade Show, which typically was held in Alexandria, MN was well attended and displayed an array of products and services available through AMFA members across northeast Minnesota and northwest Wisconsin. To learn more about how an AMFA membership could benefit your business, please contact Executive Director Sandy Kashmark at (877) 330-2632

 

On Tuesday, September 20, 2011, APEX President & CEO, Rob West, and Director of Itasca Business Development, Jeff Borling, participated in the 2011 Minnesota Bioscience Summit, presented by LifeScience Alley and the BioBusiness Alliance of Minnesota.  This year's event, entitled, "Three Technology Mega-Trends That Are Changing Our World," showcased major advances in Minnesota's biopharmaceutical, medical device, animal health, renewable energy and renewable materials industries. Experts in Minnesota's bioscience community described how their worlds are being shaped by: 

        • The Genomics, Proteomics and Synthetic Biology Revolution 
        • Disruptive Platform Technologies in Materials Science 
        • Bioinformatics as the Ultimate Enabling Technology

 

With a welcome address from Governor Mark Dayton and a keynote address delivered by Dale Wahlstrom, CEO of LifeScience Alley and BioBusiness Alliance of Minnesota, this year's summit attracted more than 300 members from Minnesota's bio-based scientific, engineering, and technology industries, as well as policymakers, academic leaders, economic developers, media, and investors. 

 

APEX was on hand to represent the northeast region of Minnesota and to identify key insights and opportunities to be factored into regional business expansion and attraction efforts. With several renewable energy and materials projects in various stages of development throughout the region, not to mention a small group of quietly-emerging medical device companies, Minnesota's fast-changing biosciences industries continue to grow in importance to the Northland economy. 

 

For additonal information about the 2011 Minnesota Bioscience Summit, or to learn more about APEX's activities in this arena, please contact Jeff Borling at: (218) 326-9411

 

From July 25-27, 2011, Jeff Borling, APEX Director of Itasca Business Development, represented the region at the 9th annual Biomass '11: Renewable Power, Fuels and Chemicals Conference in Grand Forks, North Dakota. This year's event attracted 262 registrants from 28 states and four Canadian provinces, representing 156 organizations, with the majority of attendees from private industry. 

 

Designed to maximize interaction on all topics concerning biomass, the Biomass '11 Conference featured a keynote address from North Dakota Governor Jack Dalrymple and presentations from several notable experts in biomass-related industries. Among these speakers were two representatives from APEX member organizations: Mike Polzin, Minnesota Power and Bruce Browers, Barr Engineering. 

 

Although the conference was heavily focused on agricultural feedstock applications, there were a number of speakers and companies in attendance with interests in wood-based technologies, including both established and emerging technologies. As has been the case in similar events this year, it was clear that liquid fuels and chemical production processes are gaining the greatest momentum in the woody biomass sphere, and states like North Dakota are vying with Minnesota and Wisconsin for an audience with these companies. 

 

APEX has developed a strong contact list from the conference and follow-up activities are currently underway.  If you would like to learn more about this event or APEX's strategy for developing an advanced biofuels industry cluster in northeast Minnesota, please contact Jeff Borling at: 218-326-9411

 

 

On Monday, February 28, 2011, Cirrus Industries and China Aviation Industry General Aircraft Co., Ltd. (CAIGA) announced a definitive merger agreement pursuant to which CAIGA would acquire Cirrus. In response to this exciting development, Mayor Don Ness, the City of Duluth and APEX hosted an exclusive reception at the Kitchi Gammi Club on Monday, March 28, 2011, to welcome CAIGA into our community.

In addition to top Cirrus and CAIGA executives, the event included elected officials from the City of Duluth, St. Louis County and the State of Minnesota, including Li King Feng, the International Trade Representative for Greater China from the Minnesota Trade Office.  Also present were representatives from the Duluth Area Chamber of Commerce, the Duluth Airport Authority, DEDA, and the APEX Executive Committee. At this event, Mayor Don Ness extended a very warm welcome to CAIGA as the newest addition to the region's business community, and in return, CAIGA President Xiangkai Meng expressed his excitement at the opportunity to help Cirrus continue to grow here in Duluth and become an even bigger player in the worldwide aviation industry.

Stemming from these talks came the formal memorandum of understanding that was signed between Mayor Don Ness and Xiangkai Meng on Tuesday, July 12, 2011, stating that “the City of Duluth is committed to offering its support to CAIGA to ensure that Cirrus Industries continues to be a global general aviation industry leader from its Duluth headquarters and manufacturing base. CAIGA is similarly committed to maintain the Cirrus major manufacturing operation in Duluth as the company continues its successful climb as a leader in international general aviation.”

While the memorandum is non-binding, APEX CEO, Rob West, commented that “it’s important because it offers assurances that the jobs that are here with Cirrus and its facility here will continue here in the future”. Rob also stated that “When agreements are formalized, it tends to make for better long-term relationships”.

APEX would like to further thank all of its members and economic development partners for their ongoing support during the transition between Cirrus and CAIGA, support which has clearly helped to solidify the very important agreement between the City of Duluth and CAIGA to keep Cirrus manufacturing in Duluth.

For more information about CAIGA and APEX's work with the City of Duluth, please contact Rob West at: (218) 740-3667

During the week of May 22, 2011, Elissa Hansen, APEX Director of Business Development, represented the region at the American Wind Energy Association's 2011 WINDPOWER Conference & Exhibition. This event, designed to provide a venue for the wind industry to network, do business and solve problems, has been recognized as one of the fastest-growing trade shows in the U.S. with 1,400 exhibiting companies and thousands of qualified wind energy professionals in attendance.

This event provided ample opportunity for APEX to connect with new and existing business attraction prospects, in an ongoing effort to market the region to manufacturers of large-scale wind energy equipment. In addition to several new contacts established at the conference, Hansen met privately with representatives from several companies APEX has communicated with in the past, including Fuhrländer, the German manufacturer that has considered production facilities in Minnesota and Montana.

Regardless of who was involved, many of the conversations at the 2011 WINDPOWER event revolved around the same topic: Stalled growth and an uncertain future for the U.S. wind energy industry. Hansen's conference report showed clear evidence that until certain challenges are addressed, a lack of growth in North American wind farm development will continue to push the establishment of new production facilities overseas.

Challenges for Wind Energy Industry Growth, Regionally and Nationwide
• Inconsistent or nonexistent Federal energy policies
• Declining natural gas prices
• Limited transmission infrastructure  
• Decrease in purchase power agreements (PPAs)
• Potential for legislation to repeal state-level renewable energy portfolio standards
• Expiration of attractive financing or incentive opportunities (i.e. production tax credits
  and the MN 1603 Grant Program)
• Excess capacity within most major nacelle or blade manufacturing plants

What would move projects forward and increase demand?
• Increased economic activity, resulting in increased demand for power and an
  increase in PPAs
• Congressional action at the Federal level, on par with similar actions worldwide
• State-level legislation to increase RPS or otherwise encourage wind energy adoption
• Attractive and stable financing programs, such as: 
    - Feed In Tariffs (FITS are responsible for 45% of worldwide wind deployments
      through 2009; currently unavailable in Minnesota) 
    - Production Tax and Renewable Energy Credit Programs 
    - MN 1603 Grant Program extension

For more information on APEX's Wind Energy Manufacturing strategy or the 2011 AWEA WINDPOWER event, please contact Elissa Hansen at: (218) 740-3667