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home : news : news   May 24, 2016

3/7/2013 1:21:00 PM
Peru electric rate may drive Unytite to move part of operations

D.J. Bice

Unytite Inc. in north Peru will likely move its hot forming operation out of Peru because of a “significant” electric rate increase that began in July, according to Chuck Hundley, general manager. Ten people are employed in the operation.
A feasibility study is under way to see if it is financially reasonable.
“We will make a final decision at the end of this month or April, based on the results of the feasibility study,” Hundley said. “Discussions with electric facilities, such as Ameren, have revealed that we could reduce electrical costs about in half.”
Currently, Unytite is paying about 10 cents per kilowatt hour. With Ameren, it would be 5 or 6 cents per kilowatt hour. Annually, that now amounts to about $700,000 in electrical costs for the hot forming operation, which manufactures primarily nuts and some bolts. By paying 5 or 6 cents per kilowatt hour, that total could be reduced to $300,000-$400,000, Hundley said.
Unytite met with the city of Peru three or four times to discuss industrial rates, which ultimately resulted in a graduated fee increase, as opposed to a one-time total increase.
Unytite has looked at several site relocations, including La Salle and out of state. By the end of March or April, Unytite plans to have a new site location for the hot-forming operation. Then construction of a new building will follow with a target date of June 2014 for start up of the process.
Other plants and businesses in Peru with significant electrical usage have been meeting together  and with the city of Peru to discuss the rate increase.
Unytite has been in Peru since 1990. It makes structural nuts and bolts and parts for heavy equipment and  the automotive industry. It employs about 105 people.

Related Stories:
• Peru industries adapt to new electric rates

Reader Comments

Posted: Thursday, March 7, 2013
Article comment by: fosterbw99

Mayor Harl - thank you for running another business out of Peru.

Posted: Thursday, March 7, 2013
Article comment by: CRobinson

You have to be careful with Ameren, previously Illinois Power, they will give out a sweet rate and 12 months later the rate structure will change and you'll be back to square one.

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