Industrial Rubber (fka INRB)

[Bobwins]

I was paid for my shares in 9/08 thru my brokerage acct. In the last PR, they mentioned that .89 of the purchase price of $16.50/share was put in escrow. No mention of what conditions applied to shareholders getting that amt.

Called company today and found out that the .89 was a deposit against potential environmental liability. The company has found some contamination on the grounds and is in the process of cleanup. They have not found anything really bad but are still working towards the eventual cleanup. The funds will stay in escrow for 5 years. If there is any money left in the fund at that time, the money will be disbursed to former shareholders.

I asked how the company was doing. She said great. They just got a 51 million order with a lot more potential. So sadly the insiders will win big because there will likely be a sale down the road so the insiders can cash out.

So watch your brokerage statement in 9/2013! You may get a little surprise.

[Bobwins]

meeting to vote on acquisition proposal was 9/12/08. Haven't heard when deal will close. The vote isn't a problem because the CEO controls a majority of the shares so it's a done deal.

Just need the details, how much they are going to hold in escrow and when they will determine the variables and release the remaining .89. Bobwins

[nsomniyak]

INRB--me too--I sold for 15.27--thanks to BW and others here for this pick.

[10 bagger]

INRB..

Happy to say,, I had put some away in the investment account.. Sold 2714 @$15.18 Ave.. Hold and mold in true Bobwins tradition......... hank



Please post stock symbols first in all your posts. If it's a foreign stock, please also list the US pk equivalent symbol...

[Bobwins]

Industrial Rubber Products Agrees to Merger Proposal
Tuesday August 19, 12:13 pm ET
Affiliates of Lime Rock Partners and Thompson Street Capital Partners Sign Definitive Merger Agreement


HIBBING, Minn., Aug. 19 /PRNewswire-FirstCall/ -- Industrial Rubber Products, Inc. (Pink Sheets: INRB - News), a leading designer, producer, and applicator of protective coatings to pipeline and industrial markets, today announced that it has entered into a definitive Merger Agreement with affiliates of Lime Rock Partners, a Westport, Connecticut-based private equity firm focusing on the global energy industry, and Thompson Street Capital Partners, a St. Louis-based private equity firm focused on the manufacturing, distribution, and services industries. The merger provides for the acquisition of Industrial Rubber Products for $16.50 per share (inclusive of approximately $0.89 per share that is subject to escrow) in cash, which per share price may be reduced for customary transaction expenses incurred by the company. The acquisition price represents an approximate 49% premium to the average closing price of Industrial Rubber over the preceding twenty trading days.
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It is anticipated that the management of the company, including its President, Daniel Burkes, will continue in their current officer positions and retain a meaningful portion of their ownership.

The Board of Directors of Industrial Rubber Products, upon the recommendation of a special committee of disinterested directors, unanimously approved the Merger Agreement and recommends that the shareholders of Industrial Rubber Products vote in favor of the Merger Agreement and the merger. Stifel, Nicolaus & Company Incorporated served as financial adviser to Industrial Rubber Products, and has delivered a fairness opinion to the special committee of its Board of Directors.

The Board of Directors of Industrial Rubber Products believes that this transaction provides a substantial share price premium and market liquidity for its current shareholders, while producing a more focused and flexible, private ownership structure for the company, and its employees, as it continues to deliver its IRACORE(TM) Pipe System and other leading-edge products to its customers in the oil, mining, and industrial sectors.

Mr. Burkes, CEO of Industrial Rubber Products, said, "The Board and I fully agree that the transaction with Lime Rock and Thompson Street offers the best of both worlds: a fair price for our existing shareholders and two new partners that will help Industrial Rubber Products grow. We are singularly focused on delivering unique, customized, superior solutions to our customers."

Founded as Industrial Rubber Applicators in 1957, Industrial Rubber Products sells protective products and coating for applications to steel pipe and other industrial equipment. With seventeen products lines, the company serves customers worldwide in the energy, mining, aggregates, and other end markets. Since 2006, the company's revenue has almost doubled, driven in large part by the success of the IRACORE(TM) Pipe Systems, which has broad applications to the oil sands and other industries.

J McLane, Director of Lime Rock Partners, noted, "As longstanding investors in the Canadian oil sands, we know that technology like IRACORE is vital to reducing costs and improving performance in an increasingly strained operating environment. We are thrilled to be partnering with Dan and his management team as they seek to find new ways to develop and deliver IRACORE and their other products to their customers." Bob Dunn, Managing Director of Thompson Street, added, "Industrial Rubber Products has shown, time and again, the ability to open up new markets for its products by delivering customized and technologically advanced solutions. We are gratified that the Board has agreed to our offer and look forward to applying our manufacturing investment expertise to helping the company execute on its business plan."

The Board of Industrial Rubber Products expects the transaction to close in September 2008 subject to shareholder approval and other customary closing conditions. A detailed proxy statement is expected to be mailed to Industrial Rubber Products' shareholders in advance of a special shareholder meeting at the Hibbing Park Hotel on or about September 12, 2008.

About the Companies

Founded in 1957, Industrial Rubber Products is a leading designer, producer, and applicator of elastomeric protective coatings for pipelines and other equipment used in demanding industrial applications. It serves U.S. and international customers in the energy, mining, aggregates, and other end markets. The company attracts and maintains strong customer relationships by utilizing proprietary compounds and manufacturing processes to create unique product solutions with performance and economic attributes superior to substitute products. Since the launch in late 2006 of the company's patent- pending IRACORE(TM) Pipe System, IRACORE has become the technology-leading pipe system for the fast growing oil sands industry in Canada and is beginning to penetrate other end markets. For more information, please see www.irproducts.com.

Established in 1998, Lime Rock manages $3.5 billion of private capital for investment in the energy industry through Lime Rock Partners, investors of growth capital in energy companies worldwide, and Lime Rock Resources, acquirers and operators of oil and gas properties in the United States. Lime Rock Partners is a creative, value-adding, and long-term investor of growth capital in exploration and production, energy service, and oil service technology companies worldwide. From locations in Aberdeen, Scotland; Houston, Texas; and Westport, Connecticut, the Lime Rock Partners team brings together a global network of relationships, deep interdisciplinary expertise in finance and energy company operations, and a strong track record of value creation. For more information, please visit www.lrpartners.com.

Thompson Street Capital Partners has $450 million in capital under management. The private equity firm makes investments in manufacturing, service and distribution businesses with annual revenues between $20 million and $200 million, and a minimum EBITDA of $5 million. The fund's philosophy is to partner with management in leveraged acquisitions, recapitalizations, corporate divestitures and going-private transactions. Thompson Street Capital Partners was founded in 2001 by James A. Cooper and Peter S. Finley and is located in St. Louis, Mo. For more information, please visit www.thompsonstreet.net.

[2morrowsGains]

stock_peeker...Holding and hoping we get some kind of update soon...
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=28330179

[nsomniyak]

I still have mine and am looking at adding--no particluar reason.

[stock_peeker]

You still owning INRB down here at $7.05/share? I'm trying to figure out what others know but I don't. Any insights about potential new customers (anything, + or -)would be appreciated.

'peeker

[Bobwins]

Good idea. Seems like this is a different problem than the heat/friction caused by the rocks, sand and goop within the bitumen. I would be surprised if IRACORE had the characteristics to meet this specification. Let us know if they respond to you. Bobwins

[yielddude]

I wonder if INRB could reply to this federal solicitation ...
(I emailed this to them)
Description
Under the authority of Federal Acquisition Regulation (FAR), Part 15.6 and Part 5.2, the Pipeline and Hazardous Materials Safety Administration (PHSMA) intends to contract with Pipeline Research Council International (PRCI) on a sole source basis. This acquisition is being conducted using Contracting by Negotiation in accordance with FAR Part 15, and it will provide the following that is critical to PHMSA: 1) Develop data necessary to make engineering assessments of the feasibility of transporting fuel grade ethanol (FGE) and FGE blends in existing pipelines; 2) Identify ethanol blends that can be transported in existing pipelines without significant modification of the system and operations, blends that require significant modifications, and blends that cannot be transported in existing pipelines, but could be moved in specially designed systems; 3). Characterize the time to initiation of Stress Corrosion Cracking (SCC) in a range of potent ethanol environments and identify safe operating an/or batching practices that mitigate the initiation and growth of SCC. PHMSA?s contribution will not exceed $75,000, the overall project value for these services is $321,500. PRCI is a member funded not-for-profit corporation focusing on a spectrum of activities from basic to applied research. Research ranges from near-term integrity and reliability solutions to design and operating problems in the gas transmission, oil and petroleum products, and hazardous liquid product pipelines. A majority of the industry stakeholders participated in the development of the PRCI proposal. Any response to this notice must demonstrate that competition would be advantageous to the government. In doing so, interested sources must submit technical capabilities, pricing, and other information that demonstrates their ability to meet PHMSA?s needs. Detailed capabilities must be submitted no later than 5:00 PM EDT on Saturday, September 8, 2007 to the PMHSA Office of Contracts and Procurement, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Room E22-229, Washington, DC 20590 or via e-mail at [e-mail] ATTN: Glen Vierk. This synopsis is not to be considered a request for quotation or proposal. No solicitation document is available and telephone requests will not be honored. No contract will be awarded on the basis of offers received in response to this notice, but offers will be used to determine if a comparable source is available and more advantageous to the government. If no affirmative written response is received within 15 days from the publication of this synopsis, a contract may be issued to PRCI without further notice.

http://www.fbodaily.com/archive/2007/08-August/26-Aug-2007/FBO-01384144.htm

[yielddude]

anyone subscribe to oilsands review? Apparently an article or mention of Iracore system in Sept 2007. This from google search ...

Oilsands Review - September 2007 - Cover (Page 97) choice for the Oil Sands Industry is the Iracore Piping System. This system consists of Iracore lined pipe and the Iracoupling welding flange. ...
www.oilsandsreview-digital.com/oilsandsreview/200709/?pg=97

[MikeDDKing]

I performed a patent search for Industrial Rubber. I was not able to find a patent for Iracore but that isn't surprising given that they state that the patent is pending. I did find a patent issued to Industrial Rubber back in 1993. This patent was issued to the current CEO, Daniel O. Burkes. There is also another patent issued to Daniel Burkes back in 1979.

http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPT...

http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPT...

Mike

[2morrowsGains]

Earnings are out...INRB came in with earnings of $0.75 per share for the quarter...

http://www.irproducts.com/investors/documents/20072ndQtrIncomeStatement.pdf

WOW!!! Am I reading this right??

[cleverrox]

Possible refinery could involve Iracore piping.

http://www.msnbc.msn.com/id/19246620/

The Gorilla Is Unmasked
S.D. is eyed for a huge refinery that would be the country's first in 31 years.
By Toby Shute
Motley Fool
Updated: 6:29 a.m. ET June 15, 2007

A secretive project dubbed "The Gorilla" by inhabitants of Elk Point, S.D., turns out to be a planned 400,000 barrel-a-day oil refinery. That's right. Do not adjust your computer monitor. A refinery. If actually built, it would be the first new one in this country since Marathon Oil (NYSE: MRO) opened its Garyville, La., plant in 1976.


This Kong-sized refinery plan weighs in at an estimated $10 billion construction cost. The idea is to bring heavy crude via pipeline from a Canadian oil sands operator like Suncor (NYSE: SU) or Petro-Canada (NYSE: PCZ). The pipeline aspect is not a novel idea -- I've heard Frontier Oil (NYSE: FTO) discuss similar aspirations to bring more Canadian heavy crude to its Midwestern refineries. What is novel -- aside from the whole building-a-new-refinery-from-scratch thing -- is the proposed project's carbon capture and storage ambition. The state governor made it sound as if this emissions-cutting aspect is a sure thing. As far as I know, however, such a capacity has not been commercially demonstrated for any project on the scale of a power plant or a refinery.

The deep pocket behind the proposed project is a privately held Texas oil outfit called Hyperion Resources. Hyperion, which also has an eye on Iraqi oil, last made headlines when it brought over the Iraqi Youth Soccer Team to play in America. The man at the helm is related to the Hunt family by marriage, which says to me that there are even deeper pockets behind the deep pockets. This could actually go somewhere.

The only other refinery plan in the U.S. that I'm aware of is the Arizona Clean Fuels project in Yuma, and that one has been dragging on for almost two decades. I imagine the regulatory hurdles may be somewhat lower in South Dakota, but the permitting is still going to be no picnic. With Oklahoma Sen. James Inhofe's Gas PRICE Act recently rejected, streamlined refinery permitting in the U.S. does not appear to be forthcoming.

In short, I wouldn't be rushing to short the shares of competitors Valero Energy (NYSE: VLO) or Tesoro (NYSE: TSO) just yet. That would be counting your gasoline before it's cracked.

[bbotcs]

Here is a Motley Fool article that is relevant to owners of INRB, as well as ALY and AOB.

http://www.fool.com/investing/small-cap/2007/06/15/why-this-stock-is-a-winner.aspx

The CEO of INRB is in deep.

[Bobwins]

2morrowsGains.....I think they must have added a digit in that article.

"poised to become a multi-billion dollar company"

At current levels, INRB is producing $14 million a qtr. They talk of building 5 factories to keep up with the eventual demand. That's $70million a qtr. That's 280million a year in sales. That's a long ways from a multi billion dollar company.

Maybe they meant "poised to create a lot of VMC millionaires"?

although with my holdings, that's going to take a mighty miracle! LOL! Bobwins

[2morrowsGains]

"Iracore’s success can be measured in a number of ways: it has no equivalent competitor; it is replacing imported products with American-made products; its Northeastern Minnesota workforce receives above-average wages and benefits; and it is poised to become a multi-billion dollar company."

Taken from the Summer 2007 edition of RangeView, page 3...
http://ironrangeresources.org/agency/rangeview/RV07Summer.pdf

[cleverrox]

Nice catch on the insider ownership. On the upside we won't see any silly dilutive financing. On the downside we aren't likely to see it go non-pink until the CEO is ready to sell some shares and diversify.

[upbeatmofool]

I see that Industrial Rubber manufactures film down to .250''...I would expect a spike of sorts the day Paris Hilton gets out of the can.

[bbotcs]

Bobwins: The whole town probably owns INRB! Excellent point about not diluting the shares. Gets my vote of confidence.

[Bobwins]

bbotcs...several VMC members have posted that they don't buy stocks with this much inside ownership. As you state, it's like a private company and they don't have to ask for our vote to decide something. This is a dictatorship and the CEO can do what he wants with or without the public shareholders.

That said, I have no reason to believe he is going to do something weird. His record of non dilution is pretty good. Could have easily issued a bunch of shares to finance the plant or given himself a million shares for free once the contract was signed. Doesn't appear to be his style.

So we'll see if he can produce another several qtrs of record profits and snag another oil sands customer. I imagine he's a pretty popular guy at the local golf course with any of his buddies that bought INRB.pk stock!

Bobwins

[bbotcs]

cleverrox:

If they had manufactured the pipes in China, the technology would have been bootlegged.

bbotcs

[bbotcs]

Bobwins:

Talk about a company man! With that kind of inside ownership, management has a huge incentive to beat out the competition. If they start selling pipes like Wrigley sells gum, I think we can count on a nice dividend at some point.

We have more or less bought shares in a privately held company. We have it all over the insitutional guys.

If the CEO is too cheap to do the Sarbox thing BUT pays us a nice dividend, I'll buy some pink sheets for my bedroom!
LOL.

Have a nice weekend.

bbotcs

[Bobwins]

Got a notice of annual meeting from company. Nothing new included except they did disclose ownership interests of officers and board.

CEO owns 4.2million shares(including 1.4 in trusts) out of a total of 5.5 million shares outstanding. Rest of board owns 252K total. So 4.4/5.5 is closely held by officers/BOD.

No hostile takeover here. Bobwins

[makesumgravy]

Wow!...this one has had a huge run over the last year up 15 fold from its 52wk low.

[cleverrox]

Repost from Bobwins talking about company.

wade...INRB.pk, They have been working with Suncor for several years to develop this stuff. It does work to lengthen the lifespan of the pipes. They have a steady $16million a year from their underlying industrial rubber products so their IRACORE backlog is in addition to that. gusmn1 is the expert on INRB. He knows someone that works there and has been aware of this product for several years. He showed it to me in 2005-6 on this board and I bought starting in 1/06. It's been a long wait for the pipe to be actually built.

The company went pink because they didn't want the expense of filing. They are closely held and share count doesn't change much. They don't need public financing. They had some tough times in the early 2000's and tightened up. They got their mainline business profitable but have been working on this company maker on the side. Nothing in their history indicates that this is anything but solid. They were looking to build a new factory specifically for the pipe and got state government support to build the factory in their home town instead of traveling to another state or Canada. There was an article about the new factory. They didn't issue stock to build the factory.

I talked with the CFO last year and he told me they were doing their projections so that the first order would pay for the factory so the company's future was not hanging on future orders. This is going to be very profitable for them. Patented process. I asked him if the new factory gave them capacity to take on additional customers and he said that was one of the reasons to build it. The factory had to have a free standing length to accomodate the long sections of pipe that had to have the IRACORE material applied. The IRACORE gives this pipe several times the lifespan of steel pipe alone. Given the size of these pipes and the need for continous operation, you can imagine the operating advantage of this pipe for SUNCOR as they gear up their tarsands production. Imagine having to replace your main transportation line for your raw tarsands material every couple of years. The main wearpoints are at the turns in the pipe. The problem is that once you stop the input into the line to replace one section of pipe, all input is stopped. That has to be an operational nightmare for Suncor every time the line has to be repaired. Extending the repair interval would be EXTREMELY important to production, revenues and profits.

If you look up tar sands, you will find that there are many projects moving towards production right now. I don't know how many could use the IRACORE pipe but I can't believe only SUNCOR moves the tarsands thru pipelines.

In addition to Tarsands, there must be many other situations where raw crude contains abrasive materials that wear out pipelines. I think this is just the beginning for INRB.pk.

The problem is that the company is not proactive. They will not become a PR machine. They are going to be making lots of money and don't need to issue stock. The only reason for them to promote the stock would probably be to allow insiders to eventually monetize their investment. I asked about listing last year and the CFO was non committal. He did not know if the company would gain enough benefit to list the stock.

Obviously if the financial results continue, the stock will continue climbing. Let's say they do earn 1.76 for 2007. Since they don't publish their financials or issue PR's, how high could they go? I would say that continued performance at this level would get them to the 5-6 p/e level. That's $8.80-10.56.

If you look at the stock, you will realize that it's not liquid. It trades most days but not always. The volume is in the hundreds to several thousand shares so you're not going to get in and out easily. If they have a bad qtr, good luck. BUT I collected a few thousand shares at 2.26 average and I'm going to hold. If they get another big tar sands player, this could be a $20 stock.

I am not worried about fraud. This is NOT a typical pink sheet stock. The risk is in acquiring additional contracts and the possibility that Suncor or others can figure out another coating that doesn't violate INRB's patents. Those are risks with any proprietary product that is just starting out. This is not a short term trade. Maybe someday a newsletter will find this stock. The right kind of article combined with some good news could send the stock way up but for now it's a sleepy ride up. I can live with 83% in 14 months. This isn't a stock that you can put a big bet on because of the volume or lack thereof. But I think it's a great value play for the long run. Most of the risk is gone. Suncor has blessed it, the pipe is in production, the new plant is built and operating and the Tarsands are going full steam ahead with multiple Multinational oil companies backing many projects. Bobwins

[cleverrox]

Repost: Minnesota Job Creation

http://www.deed.state.mn.us/bizdev/PDFs/JOBZ2007AnnualReport.pdf

...So instead of expanding Iracore’s pipe-coating plant
in Great Falls or Edmonton, Burkes elected to stay in
Hibbing to supply specially coated steel pipe to meet
the Canadian oil sands industry’s growing tailings
and hydro-transportation pipe requirements. Burkes
says the oil sands business is expected to require
$2.6 billion worth of specially coated steel pipe over
the next decade; and he believes his company is now
positioned to do it all.
“Two point six billion,” he says. “Not bad for a little
company in Hibbing.”
And it’s especially impressive when you consider
that, if not for Iracore’s specialized fabrication
process, none of those miles of coated pipe would
have been produced in North America. “All of that
would have come from the Pacific rim, from Asia,”
Burkes says.
Iracore is ramping up fast. Already the company
has exceeded its hiring and wage goals, with 29
employees earning an average wage/benefit package
of $28 per hour. Burkes anticipates that the Hibbing
facility will soon employ 45 workers. He also hopes
to persuade at least one Iron Range school to start
a new welding program to provide the specialized
training his workers will need to fabricate the miles
of pipe the oil sands industry will require.
Duane Northagen of the Hibbing Economic
Development Authority says there’s no doubt in his
mind that JOBZ benefits helped to keep Iracore in
Hibbing. And he says it was an easy call for local
officials because of the long-term impact a company
like Iracore will have on the community.
“This was presented as a pilot project,” Northagen
says. “We expect that this is just the first round. We
anticipate longevity and expansion.”
“JOBZ is absolutely why we’re here,” Burkes agrees.
“And,” he says, “I have four more plants to build.”

[cleverrox]

BusinessNorth Exclusives
Industrial Rubber rides on Canada oil boom
Governor cites new Hibbing plant as JOBZ success, but legislature may shut down program.

2/21/2007
by Richard Thomas


Minnesota Gov. Tim Pawlenty was in Hibbing Feb. 20 to tour Industrial Rubber Product’s new plant, and tout his key economic development program JOBZ (Job Opportunity Building Zone), of which Industrial Rubber is a beneficiary.

Industrial Rubber (OTC:INRB) was in lease negotiations to open the plant outside the state, but government officials put together a package that enticed the Hibbing-based company to expand at home. The package includes a JOBZ tax abatement and a $1.5 million loan from Iron Range Resources.

Without the JOBZ incentive, “we’d be in Montana,” said Industrial Rubber CEO Daniel Burkes.

State Sen. Tom Bakk, DFL-Cook, doubts that. “When companies consider location, taxes are a very small consideration,” he said. A skilled workforce, training opportunities, and transportation are far more important factors, he said.

JOBZ is being challenged in the Senate tax committee, of which Bakk is chairman. He said the Senate “at a minimum” will limit the program so it applies only to disadvantages areas. “There’s a good possibility we could scrap the whole thing,” he said.

Last October the city of Hibbing transferred JOBZ designation from a north side industrial park to the former Noble Enterprises building, at 3430 E. 13th Ave., Industrial Rubber’s new plant site. The plant opened in December and employs 30 people with wages and benefits averaging $20 per hour, Burkes said.

Bakk said the new plant is “a very good project but I don’t think they needed JOBZ,” since the company got the IRR loan. “I don’t blame them for taking advantage.”

JOBZ in jeopardy

Minnesota launched its JOBZ program in 2004, whereby companies and investors that start up or expand in targeted areas outside the Twin Cities metro region get relief from state income and local property taxes through 2015. Pawlenty wants to extend the program so that new companies qualifying get a full 10 years of benefits.

Bakk sponsored the legislation to start the program. But since then he has criticized it for being heavily used in already prosperous areas such as Rochester and St. Cloud.

In early February tax committee members questioned in particular two JOBZ projects: Andersen Windows in North Branch and Polaris in Wyoming, MN. Neither area is economically disadvantaged, Bakk said. Andersen Windows received the tax break to create jobs in Wyoming but then laid off 400 workers at its Bayport plant.

“Two examples in the greater scheme of things don’t amount to much” considering the program has created 4,300 jobs so far, said Alex Carey, Governor Pawlenty’s press secretary for Greater Minnesota. He said the JOBZ program was created to keep company expansions within the state, not to direct growth to certain areas. As long as growth stays within the state, the benefits will “trickle down” to all of Minnesota, he said.

Canadian oil rush

Industrial Rubber’s new plant produces Iracore, a lined pipe designed for the oil sands industry in northern Alberta. Canada’s Athabasca basin holds one of the world’s largest petroleum reserves.

Athabasca oil sand is a sticky tar, or bitumen, from which is it difficult to create synthetic oil. But improved technology and the increasing cost of regular oil have made “Alberta sweet crude” more attractive. Oil sands production was 1.1 million barrels per day in 2005 and Canada’s National Energy Board expects the number to triple by 2015, with planned capital expenditures to date topping $100 billion.

Industrial Rubber has booked purchase orders for 170,000 feet of Iracore tailings pipe over the next two and a half years. The largest order is a $64 million contract from Suncor Energy. Another order is from Syncrude, which operates the world’s largest mine in Athabasca.

The tailings are abrasive and heated, wearing out pipes in a matter of two years. The Iracore lined pipes cost two- to three-times as much as conventional carbon steel pipes, but last five times longer, Burkes said.

He said Industrial Rubber is in a “dogfight” with competitors in South Korea, Japan, and China and would need to build a plant five times larger than the current one it has opened to capture the market.

One concern Burkes has expressed to Pawlenty and U.S. Rep. James Oberstar is transportation. With road weight limits, the company can ship only five pieces of pipe at a time by truck while in Minnesota. Once in Canada, a single truck can transport eight pieces.

Industrial Rubber’s evolution

Industrial Rubber is one of just a handful of publicly traded companies based in Northeastern Minnesota. Launched in 1986, it has had an up-and-down history from its beginning. Burkes purchased a closed rubber lining plant from his former employer, Irathane Systems. The company went public in 1998.

In 1999 the principal industries it serves — including mining, aerospace, construction, agriculture, and transportation — all experienced a slump.

“We went into the largest recession since the 1970’s. Everything went into the dumpster,” Burkes said. But going public enabled the company to generate the funds for its expansion. Overall, while the company has shown quarterly losses, “cash flow has been very good,” he said.

On Feb. 20, Industrial Rubber’s stock traded at $3.40 per share, up $1.49 from a year ago.

Industrial Rubber employs about 145 people with three plants in Hibbing, one near Salt Lake City, UT, and one in Sudbury, Ontario. The company also has a strategic partnership with Acotec in Santiago, Chile.