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September 02. 2012 1:34AM
New Hampshire
An employee of Kasi Infrared in Newport lowers a chamber of infrared lights over an asphalt repair area in a demonstration of infrared repair technology on Thursday attended by representatives of a South Korean company that will partner with Kasi in the sales and distribution of Kasi equipment in South Korea. (Photo Courtesy N.H. Department of Economic Develop)
Newport asphalt repair business signs $15m deal with S Korean company
An employee of Kasi Infrared in Newport lowers a chamber of infrared lights over an asphalt repair area in a demonstration of infrared repair technology on Thursday attended by representatives of a South Korean company that will partner with Kasi in the sales and distribution of Kasi equipment in South Korea. (Photo Courtesy N.H. Department of Economic Develop)
NEWPORT — The sign spread across the entrance to a large manufacturing building said it all.
With the flag of South Korea on one side and the United States on the other, Roger Filion, president of Kasi Infrared in Newport, sent a clear message: “Mr. Cheon G. Hwa and Mrs. Catarina Lee, Welcome to America. Looking Forward to Our Partnership.”
A few feet away, a contingent of about eight state and local officials joined the South Korean visitors and Kasi management in watching a demonstration of the infrared asphalt repair technology at the heart of a $15 million deal between Kasi and the Handong Group to sell 150 Kasi machines in the East Asian nation.
Choen, whose Handong Group owns an asphalt factory in South Korea, was clearly impressed, as he slowly walked over the repaired area, gazing down at the freshly laid asphalt with all the intensity of an art critic at an exhibit opening.
Handong’s managing director, Lee, held her iPad steadily in the upright position to record the whole affair as it unfolded under a blazing summer sun Thursday afternoon.
Kasi Infrared may not be huge, with about 20 employees at a 20,000-square-foot plant on the John Stark Highway, but it represents the kind of enterprise that will be key to the state’s economy in the years ahead, according to state Economic Development Director Chris Way, who was among those on hand for the demonstration.
The state is targeting small, family-owned businesses, with 10 to 50 employees, engaged in a technology- or knowledge-based enterprise, with the potential for international trade. “It’s not the large company that comes and gives a job to everyone in the community,” he said.
Not that the state wouldn’t welcome large employers. It’s just that a large number of smaller employers like Kasi can keep a community from relying too much on one company while diversifying the state’s manufacturing base.
Large employers with huge domestic contracts for electronic or automotive components once dominated manufacturing in New Hampshire, but no more. Smaller, nimble operations with a global reach are key to a more secure future for manufacturing in the Granite State, according to Way.
Kasi fits the mold. The business was established about 15 years ago, according to Filion, who bought the company with his wife from its original owners after working for them for about 11 years. When he purchased the business six years ago, he started with six people, and has 15 to 20 today, based on the level of business.
“Right now I could actually use some people, but I’m dragging my feet,” said Filion, suggesting the kind of uncertainty that is being reported by businesses nationwide. “I just don’t want to take the chance that it might dry up real quick.”
The product Kasi sells is designed for use by anyone who has to fill holes in a road, parking lot or runway. Typical purchasers include property managers, municipalities, utility companies and airports. The state Department of Transportation owns an infrared machine, although from a different vendor, according to Michael Pillsbury, deputy commissioner of the DOT, who was on hand for the demonstration.
Initial costs
The infrared technology for road patching has been around for decades, but is not in widespread use because of the big up-front costs. A Kasi unit on a truck chassis sells for about $100,000. The savings come down the line because, according to Filion, once a pothole is repaired with infrared technology, it will not have to be repaired again.
The high temperatures from a chamber of infrared bulbs placed over the repair area heats the new and existing asphalt to such a degree that they melt together and form what Filion described as a permanent bond.
The heating units on the Kasi console are able to take recycled asphalt and melt it down for reuse, something promoted on the back of Kasi business cards as, “Go green. Recycle asphalt with Kasi Infrared.”
“Every state in the U.S. has one of my machines,” Filion said. “This has been the factory’s best year since the company was born. Our sales are up this year by at least 30 to 40 percent.”
Filion attributes much of that growth to aggressive marketing and international reach. Even before the deal with South Korea, an agreement with a partner in Hungary resulted in several sales to companies in Eastern Europe, Filion said.
He has even turned overseas for financing.
“I contribute much of our success, or the way we’ve kept our heads above water, to China,” he said. “When I couldn’t get any loans here, I had to turn to China. I actually ended up selling the rights to two of my machines to a company in China so I could get enough capital to buy this building and get room to expand.”
Dave Solomon may be reached at dsolomon@unionleader.com.
With the flag of South Korea on one side and the United States on the other, Roger Filion, president of Kasi Infrared in Newport, sent a clear message: “Mr. Cheon G. Hwa and Mrs. Catarina Lee, Welcome to America. Looking Forward to Our Partnership.”
A few feet away, a contingent of about eight state and local officials joined the South Korean visitors and Kasi management in watching a demonstration of the infrared asphalt repair technology at the heart of a $15 million deal between Kasi and the Handong Group to sell 150 Kasi machines in the East Asian nation.
Choen, whose Handong Group owns an asphalt factory in South Korea, was clearly impressed, as he slowly walked over the repaired area, gazing down at the freshly laid asphalt with all the intensity of an art critic at an exhibit opening.
Handong’s managing director, Lee, held her iPad steadily in the upright position to record the whole affair as it unfolded under a blazing summer sun Thursday afternoon.
Kasi Infrared may not be huge, with about 20 employees at a 20,000-square-foot plant on the John Stark Highway, but it represents the kind of enterprise that will be key to the state’s economy in the years ahead, according to state Economic Development Director Chris Way, who was among those on hand for the demonstration.
The state is targeting small, family-owned businesses, with 10 to 50 employees, engaged in a technology- or knowledge-based enterprise, with the potential for international trade. “It’s not the large company that comes and gives a job to everyone in the community,” he said.
Not that the state wouldn’t welcome large employers. It’s just that a large number of smaller employers like Kasi can keep a community from relying too much on one company while diversifying the state’s manufacturing base.
Large employers with huge domestic contracts for electronic or automotive components once dominated manufacturing in New Hampshire, but no more. Smaller, nimble operations with a global reach are key to a more secure future for manufacturing in the Granite State, according to Way.
Kasi fits the mold. The business was established about 15 years ago, according to Filion, who bought the company with his wife from its original owners after working for them for about 11 years. When he purchased the business six years ago, he started with six people, and has 15 to 20 today, based on the level of business.
“Right now I could actually use some people, but I’m dragging my feet,” said Filion, suggesting the kind of uncertainty that is being reported by businesses nationwide. “I just don’t want to take the chance that it might dry up real quick.”
The product Kasi sells is designed for use by anyone who has to fill holes in a road, parking lot or runway. Typical purchasers include property managers, municipalities, utility companies and airports. The state Department of Transportation owns an infrared machine, although from a different vendor, according to Michael Pillsbury, deputy commissioner of the DOT, who was on hand for the demonstration.
Initial costs
The infrared technology for road patching has been around for decades, but is not in widespread use because of the big up-front costs. A Kasi unit on a truck chassis sells for about $100,000. The savings come down the line because, according to Filion, once a pothole is repaired with infrared technology, it will not have to be repaired again.
The high temperatures from a chamber of infrared bulbs placed over the repair area heats the new and existing asphalt to such a degree that they melt together and form what Filion described as a permanent bond.
The heating units on the Kasi console are able to take recycled asphalt and melt it down for reuse, something promoted on the back of Kasi business cards as, “Go green. Recycle asphalt with Kasi Infrared.”
“Every state in the U.S. has one of my machines,” Filion said. “This has been the factory’s best year since the company was born. Our sales are up this year by at least 30 to 40 percent.”
Filion attributes much of that growth to aggressive marketing and international reach. Even before the deal with South Korea, an agreement with a partner in Hungary resulted in several sales to companies in Eastern Europe, Filion said.
He has even turned overseas for financing.
“I contribute much of our success, or the way we’ve kept our heads above water, to China,” he said. “When I couldn’t get any loans here, I had to turn to China. I actually ended up selling the rights to two of my machines to a company in China so I could get enough capital to buy this building and get room to expand.”
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Dave Solomon may be reached at dsolomon@unionleader.com.