Kringstad Ironworks grows to tackle manufacturing projects
by Susanne Retka Schill Posted on 1/8/2007
Two major contracts catapulted Kringstad Ironworks this past year from 11 full time employees in the spring to 41 by year's end.
Bernie Kringstad started out 10 years ago as a welding shop south of Hoople doing farm repairs. The first manufacturing job they tackled was building safety hitches used to pull beet trucks through muddy fields. Then came a partnership with the University of North Dakota engineering department to build a prototype for a drone launcher. "That opened doors for bigger projects," said Kringstad.
When the opportunity came, they bid on American Crystal's contract for building massive sugar beet pilers. At about the same time they hosted a Danish representative from LM Glassfiber, the world class builder of wind turbine blades. They were looking for someone to build glass carts -- fully automated steel carts that handle one ton rolls of fiberglass -- for their plant expansion at Grand Forks and Quebec.
When both contracts were solidified, Kringstad Ironworks turned to Dawn Keeley with the Red River Regional Council / Small Business Development Center for help with managing the growth. They needed additonal employees, more space, new equipment and operating capital.
"Dawn knew the organizations to go to for the different parts of the funding," said Kringstad. The process took three months of fairly intense work. "We sat down for many hours and set up the spreadsheets and different formulas to build the business plan," he said. "Plus every organization wants it done a little differently."
The financial package included First United Bank, Red River Regional Council, the City of Park River, Small Business Administration, N.D. Development Fund, Bank of North Dakota, Polar Communications and the Walsh County Job Development Authority.
The City of Park River leased a former mushroom plant to Kringstad, with a credit allowance for each employee hired. "Once we hit 18 employees we got the place rent free," said Kringstad. The Park River plant boosted the company's floor space five-fold. The farm shop has 7200 square feet and the Park River plant 40,000 square feet. Part of the new financing went towards renovating the building and buying the equipment needed to build large machinery.
"I'm really thankful to Polar Communications for matching the preferred stock buydown by granting us $10,000," said Kringstand. "Walsh County Job Development Authority matched that."
"To get these kind of jobs in Park River, at the north end of the valley, has everyone excited," he said. "Fargo and West Fargo plants usually get these kind of orders."
