November 23, 2024
Business

Irving Tannery poised to grow Partnership pulls Hartland firm from brink of bankruptcy

HARTLAND – The country’s largest side leather producer, on the verge of bankruptcy a year ago, is poised today for a major expansion that likely will bring 100 new jobs to this small Somerset County community.

Richard Larochelle of Irving Tanning Co. revealed Tuesday that his firm has partnered with an Oklahoma company, Sensible Solutions Inc., to create a new product that binds leather scraps into a useable leather “fabric.” The scraps, hundreds of tons of them trimmed from the edges of tanned hides, previously had been swept from the tannery floor and sent to landfills. The new technology has taken more than a year to develop, he said.

“This product will change the face of this company drastically,” Larochelle told Gov. John Baldacci during a tour of the facility Tuesday. “Our problem now will be managing the growth.”

Larochelle’s son and company manager Paul Larochelle explained that what had been a waste product will now become seat covers and side panel covers in Ford, Mazda and Mercury vehicles. “They have told us the sky is the limit,” he said.

Founded in 1936, Irving Tannery has evolved into the country’s largest side leather manufacturer, turning cow hides from around the world into fine shoe, luggage and furniture leather, as well as leather for military uses.

The tannery has annual sales of $65 million and the capacity to produce more than 25 million feet of leather per year.

“Irving’s has always been a leader in the industry,” Larochelle said. “It has been our ability to lead that has provided our ability to sustain in this business.”

But the road wasn’t always easy, Baldacci said. “There are two parts to Irving’s journey: what got them to this point and now the new hiring that will be going on.”

Last September, after months of maneuvering and courtroom negotiations, Irving emerged from bankruptcy through its $14.5 million sale to Meriturn Partners LLC, which has primary offices in Raleigh and San Francisco. Irving had filed in March for Chapter 11 protection in U.S. Bankruptcy Court in Bangor after its chief creditor, TD Banknorth, pulled its line of credit.

Key to the company’s success was a $250,000 loan last July from the Maine Department of Economic and Community Development to keep the tannery operating while its sale and debts were resolved. A $250,000 term note from the Finance Authority of Maine and $500,000 from the Maine Rural Development Authority also helped keep the tannery afloat and restore employees’ health benefits while the sale was completed.

“Maine needs to take a look at what is going on in Hartland,” Baldacci said. “Maine is becoming a leader in the global marketplace.”

Larochelle said that Irving has been into globalization for 30 years, exporting more than 60 percent of its products to Asia and Europe.

Globalized marketing is no problem when working from central Maine, explained Richard Larochelle. “Being in Maine is no barrier. People say it is difficult to do business in Maine, but to the contrary, we have found the state very, very supportive and the infrastructure not a problem.” He said Irving is able to compete internationally because it is located in Maine, not despite it. He also credited the work ethic in Maine with providing a quality labor force for his company.

During the tour of the facility, Hartland Town Manager Peggy Morgan said she had worked in the tannery for four years before attending business college. “I know how important this company is to Hartland, from the inside out,” she said. Currently, more than 200 local people work at the facility, which is located in three separate sites in Hartland.

Larochelle said the new hiring and construction will take place in the next 12 to 24 months.


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