8.0. EDSR 01-12-1998 - Laserfiche WebLink

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Reinforce Customer Support/Quality Service/Inspection capabilities to handle the • increased demands created by the influx of new orders and broader coverage of existing accounts. Augment company staff to support and sustain prolonged growth under the new marketing plan. The above changes require capital, but for the most part funding will be through operating cash flows. The building expansion will require an outside investor who will either participate as a second mortgagor or build the building entirely and lease it back. Northstar would however stipulate that it reserves the right to purchase the building within a five year period if leased. Investment Strategy The basic technology for die castings has changed very little over the past 20 years, however process controls such as computerization for die set ups, production diagnostics for quality control, production analysis etc. have changed dramatically. Productions cycle times are being reduced while quality and efficiency is unparalleled by the changes in the state of the art. Northstar Die Casting has recognized the need for technological change as essential in its competitive strategy to succeed for the balance of the 20th century and beyond the year 2000. One of the highest production cost associated with die casting is the use of power, rather gas or electric, the cost is extremely high. In an effort to reduce IPthese cost, there have been technological break through in terms of holding furnaces for molten aluminum. These furnaces can melt faster, run cheaper and provide 100% investment capture in as little as 6 months. Northstar has begun to replace all of its holding furnaces to address this very real need for production efficiency. Furthermore, negotiations are being conducted on a new state of the art die casting machine that will be fully automated. Both investment projects should be completed and on line by the summer 1998. A precursor if not tantamount to new equipment is a functionally efficient building that facilitates reduced labor inputs, while providing a safe working environment for the employees. Northstar Die Casting is currently leasing a 21,400 sq. ft. facility, which is far to small for the company's growth requirements and does not allow machining beyond its current capabilities. Efforts are being made to relocate the operations to a new facility, enhancing the company's image with customer prospects and existing accounts as well. The new facility is seen to allow the company to grow in the short term (1-3 years) to 6 million spurring personnel growth by 50% over the same planning period. Management Team Our management team consists of 5 men and women whose accumulated backgrounds consist of 40 years of marketing and business development with both small and large