Cyclone Power Technologies Inc., developer of the all-fuel, clean-tech Cyclone Engine, announced that its subsidiary Cyclone-WHE LLC and production partner Precision CNC LLC have signed a lease for a new manufacturing facility located in Lancaster, Ohio. This 16,000 square-foot facility has the production and assembly space capable of turning-out at least 1,500 Cyclone engines per month, which is Cyclone’s conservative sales forecast for the 10hp WHE-25 engine over the following three years.
The lease, signed by Precision CNC with Cyclone-WHE as a sub-lessee, provides advantageous terms to allow the two companies sufficient time to ramp-up their respective operations prior to the commencement of rent obligations. Additionally, the landlord under this lease, The Windsor Company, will invest up to $45,000 in improvements and equipment moving allowances, and has requested and received an option to invest up to an additional $100,000 directly into Cyclone-WHE. The Windsor Company, which owns considerable commercial properties in the area, will also work with Precision CNC and Cyclone as both companies expand in the future, to either build-out the current space or build a new facility.
Christopher Nelson, President of Cyclone and Managing Director of Cyclone-WHE, stated: “We’re thrilled to find a home in Lancaster to start building our Cyclone engines. Along these lines, we remain on schedule with our partners at The Ohio State University’s Center for Automotive Research to begin this process by the end of this year, and expect to be in full production mode in 2014. We appreciate all the support that Fairfield County and our new landlord have provided to make this happen, including direct cash investments in our project by The Windsor Company.”
Nathan Hawkins, President of Precision CNC, stated: “This is an excellent move for us, as we have outgrown our current facility and expect considerable growth over the following five years in connection with our work with Cyclone. We understand the enormous market potential for the Cyclone engines, and want to be ready to fulfill their production requirements moving forward. We thank the Moore family at The Windsor Company in helping make this happen.”
Jonny Moore at The Windsor Company stated: “We welcome Precision CNC and Cyclone-WHE to Lancaster, and look forward to working with them in any way we can to help make their businesses successful.”
In a joint statement, R. Michael Pettit, Lancaster Economic Development Director and Bob Clark, Director of Fairfield 33 Development Alliance stated: “Advanced manufacturing is a targeted industry that Lancaster and the Fairfield 33 Development Alliance are marketing to and we are very fortunate to be a part of the Precision CNC and Cyclone Power Technologies expansion plan.”