09/12/05 Recycler of pallets buys former lumber plant

About 30 jobs will be added at new business near Fortville
A former lumber yard at CRs 300W and 1000N that has been closed for several months soon will house a new business.

CLM Pallet Recycling, a division of the Indianapolis-based CLM Trucking, repairs and recycles wooden pallets used to ship everything from paper products to frozen food. The building, which includes more than 50,000 square feet, was purchased for $1.9 million according to the Hancock County Recorder’s office.

“We are working in there now to get some of the equipment installed Mark Loughery of CLM Pallet Recycling said Wednesday.

Wood pallets are vital to the shipping industry. They make picking up and moving goods by forklift fast and efficient.

But they also must be taken care of. Pallets that are shipped overseas must be restored and treated for bacteria and pests before they can be shipped out of the country, Loughery said “We do that for our customers now as a service.”

The process involves storing the pallets in semi trailers or inside a building until they can be cleaned, inspected and repaired. The cleaning includes a lengthy heat treatment process.

“We are in the process of installing a kiln on the premises, and then there is a new machine for us, a chipper,” Loughery said.

Planks that have been damaged will be destroyed and chipped into mulch that will be available for sale.

The company now is housed at the former Chrysler plant on Shadeland Avenue in Indianapolis.

Mike Ferris, a member of the Fortville Town Council, said the operation is allowed under the current industrial zoning.

“We were in their facility at the old Chrysler plant. They told us there were a million pallets in their part of the building and I didn't see any sawdust anywhere,” said Ferris, who recently toured the plant.

Loughery, whose CLM Trucking hauls mostly frozen foods, said 30 jobs will be moved to the former Hagar plant, but it could employ more if business warrants. The jobs pay $9 to $12.50 an hour.

“This is a division of our company, and while it is related to the trucking, we have a lot of customers with pallets who are not our trucking customers,” said Loughery.

Crews are installing the equipment that will be needed for the plant to begin operation Wednesday.

Ferris said the plant is on the town's sewage utility but is not a water customer and has not asked for tax incentives.

The company will install “several hundred thousand dollars in equipment” to get started according to Loughery, adding to the area's tax base.

“They have asked for nothing,” said Dennis Maloy, executive director of the Hancock Economic Development Council. “We were looking into a state infrastructure grant to run some water lines to them, but that assistance was not available, so the taxes go right on once they get started.”