By Marilyn Odendahl, Truth Staff
modendahl@etruth.com
ELKHART -- With new owners, Kem Krest Corp., the company once owned by the former Accra Pac Group, is shopping for a new home, even considering moving its corporate headquarters from its hometown.
Amish S. Shah, son of Satish and Debra Shah, former owners of Accra Pac, and David Wagner, son of Elkhart restaurateur Doug Weaver, completed the purchase of the supply chain management company in May and are now serving as president and chief operating officer, respectively. The pair have big plans to expand Kem Krest's services into such industries as medical supply, government services and recreational vehicles.
"Even in a struggling economy, we continue to see substantial growth and substantial opportunity," Weaver said. "Yeah, we're a couple of young guys but we're excited."
The Elkhart facility at 1919 Superior St. includes the corporate headquarters and about 80 of the company's 100 employees. Shah and Weaver want a new plant up to 200,000 square feet in the Midwest but not necessarily in the City with a Heart.
They are actively looking for a new home, Shah said, in Elkhart as well as within a 200-mile radius of the city which includes locations in Illinois, Michigan, Ohio and Kentucky. They are talking to municipalities and hope to make a relocation decision by the fourth quarter of 2008.
Cost of land and buildings, along with grants and incentives available, are all part of the discussions with cities and states, Shah and Weaver said.
Calling Kem Krest a "good corporate citizen," Shah emphasized his company is involved in the local community and said other municipalities are excited about being considered.
"I might be a little biased," he said, "but I think we are kind of the ideal candidate."
Company officials met with representatives from Elkhart more than a month ago, according to Brian Gildea, economic development manager for the city. Since Kem Krest is still doing due diligence, nothing specific was discussed as to company needs or special programs the city and state might be able to put forth.
"It doesn't make sense to throw out an offer if we don't know what they're looking for," Gildea said. "Certain projects have different needs. We have to see what those are before we try to meet that."
If the city offers some type of incentive, it will not be the first time the city has worked to keep a Shah-owned business. In 2003, the Dave Miller administration bought Accra Pac's building at 1919 Superior St. and then leased it back to the company, in part, to prevent the business from moving its headquarters and operations to Connecticut.
A year later, Accra Pac secured a tax abatement from the City Council and a $200,000 loan from the Horizon Fund to aid a $9 million expansion of the plant on Middlebury Street.
Accra Pac was repaying the city for the Superior Street property when the company was sold to KIK Custom Products in 2005. After the sale, the Canadian company settled the debt with the city.
Losing Kem Krest could remove more than the company's headquarters from Elkhart. Generally, world recognition along with high-level employees who typically have more education and more wealth populate many companies' main offices, said Kyle Hannon, public policy at the Greater Elkhart Chamber of Commerce.
A new location would give the new owners of Kem Krest a clean slate from which to begin, Shah explained. The owners want to expand their business through vertical integration and acquisitions and to increase revenues from what Shah and Weaver say is currently $100 million to $250 million.
"Ideally," Shah said, "everything would be under one roof."