Denman seeks government loan or contracts

Denman seeks government loan or contracts

Leavittsburg, Ohio -- Denman Tire Corp. is looking for ways to survive the next nine months without going under, including either a loan or new contracts from the federal government.

The tire maker has met with at least one member of the US House of Representatives, Tim Ryan (D-Ohio), in an effort to land either, according to Denman President Sandy Pensler. Ryan's staff has taken up the Denman cause in Washington but without any positive results thus far.

The company has been losing money steadily for the last several months, and it won't make it through the rest of the year without help, he said. Pensler noted that business has improved slightly of late. Nonetheless, the firm still needs a financial boost.

Basically, the loan would help fund a capital improvements project that would allow the firm to produce new lines of tires, he said. The award of government contracts would serve the same purpose.

Several years ago, Denman had a number of pacts with the Department of Defense, but Michelin now has those and other contracts.

Denman wants the plant upgrades to make larger off-the-road tires along with radial tyres for antique automobiles.