A $1 million loan from the Milwaukee Economic Development Corp. will help SIC Lazaro increase its workflow and address a cash flow problem that led to a lawsuit filed by a supplier, a top SIC Lazaro official said.
Chapel Steel Corp., based in Pennsylvania, claims the manufacturer located at 7044 N. Teutonia Ave. failed to pay roughly $71,000 for steel plates delivered in 2014. The suit was filed this month in Milwaukee County Circuit Court.
Amilcar Pitre, chief financial officer of SIC Lazaro, said the company encountered cash flow problems during rapid production growth last year. The Spanish manufacturer produces counterweights for cranes, heavy construction equipment and elevators, and opened its first North American plant in 2011.
Sales from the Milwaukee location increased from $5.7 million in 2013 to $12 million in 2014, but the increase could have been managed better, Pitre said.
He said he met with key suppliers and worked to reschedule payments.
"We'll resolve this," he said of the Chapel Steel lawsuit.
MEDC provided a $1 million loan to SIC Lazaro in 2013, and the company repaid that debt. The new loan approved in February includes $770,000 for working capital, which should help resolve the cash-flow problem. Another $330,000 will be directed toward new equipment.
Pitre said he would like to add a second paint booth to fix a bottleneck in the production line and fulfill orders in May and June.
SIC Lazaro's customers include Manitowoc Co., Terex Corp., Otis Elevator Co. and Schindler Elevator Corp.