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023 <br />0 FRONTIER SPINNING MILLS <br />SUMMARY <br />Frontier Spinning Mills is uniquely linked to North Carolina. It is a legacy company supporting several <br />small communities, impacting several thousand jobs and encompassing multimillion dollar capital <br />investments. The company was founded in 1996. Its roots can be traced even further back in North <br />Carolina history. <br />CHALLENGE <br />Frontiers current challenge is funding a difficult multi - million dollar change in logistics systems and <br />processes. The change is required by their customers and necessary to remain globally competitive in <br />their industry sector. <br />The importance of supporting a major change in Frontier's logistics systems and processes cannot be <br />underestimated. Grants -in -aide would be used to help migrate shipping equipment and systems to an <br />internationally - accepted standard of transport container. This change, in turn, enables increased <br />volumes of shipments from Wilmington versus out -of -state competitor ports. <br />PROPOSAL <br />• A unique economic development grant proposal supporting Frontier would nevertheless be aligned with <br />North Carolina incentive policies and practices. It would be based on a fair and effective return on <br />investment scenario. It would he based on a compelling case for job retention and potential job <br />creation. Equally important, Frontier's change in logistics models would help the Port of Wilmington <br />realize future growth of commerce as a result of demonstrating increased levels of business for shipping <br />lines. <br />With support, Frontier will maintain its competitive position with key customers, sustain production <br />levels and employment levels, and foster a new generation of business at the Port of Wilmington. <br />Without it, Frontier would lose its competitive position and subsequently force a cut back in <br />production which in turn would force the company to cut jobs. The Port of Wilmington would also <br />lose a critical opportunity in its history to grow operations, create new jobs and encourage additional <br />capital investment. <br />Economic opportunities such as those afforded currently by Frontier and its key customers have not <br />presented themselves frequently at the Port of Wilmington; and particularly cannot be expected during <br />a time of recession. Supporting Frontier is a smart investment with a fair and effective "return on <br />investment" scenario that aligns in spirit and policy with existing state incentive practices. Assistance is <br />predicated on three critical priorities: <br />(D Preserving Jobs in North Carolina Communities <br />OO Job Growth at North Carolina's Port of Wilmington <br />• 0 Investing in North Carolina's Economic Engine: The Port of Wilmington <br />