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DERBY LINE â€“ A Derby Line manufacturing plant is getting an economic boost from the Vermont Economic Development Authority (VEDA). The help comes in the form of low-interest loans to repair and replace equipment and perform maintenance on the building.
VEDAâ€™s original charter was about increasing employment but now a largeÂ part is about retaining employment in the current economy. About 180 people work at Tivoly.
Since VEDA is not-for-profit, interest rates are about 2 to 2.5 percent. Combining that rate and a regular market rate loan from Community National Bank, Tivoly gets a good deal.Â
â€śItâ€™s a tremendous thing,â€ť said Graham Rae, Tivoly CFO. â€śWeâ€™ve partnered with VEDA for quite a few years now.â€ť
Tivoly has applied for and received VEDA money for the past three or four years. The company only borrows the money after it spends it. Tivoly also has to contribute some money. The total amount of this yearâ€™s expenditures will be about $700,000.Â
â€śItâ€™s important, especially for a manufacturer, to invest in the plant and equipment every year,â€ť said Rae. â€śThere is constant maintenance on the building and maintenance and improvement on the equipment.â€ť
Ken Armstrong from Lyndonville was repairing the plantâ€™s chimney Friday afternoon. Besides repairing the chimney, Tivoly is rebuilding some of its equipment.Â
The primary use of the money is for equipment, butÂ Rae pointed out itâ€™s important to maintain the facility.
â€śSome of our machines here are 40 to 60 years old and they have to be rebuilt every 15 or 20 years,â€ť said Rae. â€śWe also acquire new machinery,â€ť Rae said.
Tivoly has a large assortment of customers, but none of the final products carry the companyâ€™s label.Â The company manufactures taps and reamers for major distributors who, in turn, sell to other distributors, sometimes retailers. A classic application is the automotive industry, appliance and companies that make electrical motors.
â€śAnything that requires a thread be put into a piece of metal,â€ťÂ Rae said, â€śthereâ€™s where they use our taps.â€ť
Customers are primarily in the United States and Canada, but there is at least one in Australia.
Sales are going well for Tivoly and it currently has a backlog of orders. The company has about 60 customers. Tivoly makes about 80,000 pieces a week.