By Felicia Messimer
Alaska Journal of Commerce

The Ulu Factory Inc. is chopping at the seams to get into a bigger and more efficient building.

The Anchorage-based factory is making plans with the Alaska Railroad Corp. to lease land and build a home for the expanding company, according to Patrick Flynn, railroad spokesman in Anchorage.

Flynn said the company currently leases from the railroad on East Ship Creek Avenue. The new building the factory wants to build will not stray far from its current location, Flynn said.

The railroad will receive $18,000 annually beginning in 2003 from the Ulu Factory, Flynn said.

The time-worn building that houses the factory isn't big enough, according to David Gransbury, The Ulu Factory Inc. owner.

Adding on to the current building, Gransbury said, has cost him more than it will to construct a new facility.

Gransbury wouldn't say how much the new building would save him or how much it would cost to build one.

Gransbury said the new factory will get everything under the same roof. "There are rooms now that are attached with crawl spaces," Gransbury said. He also would like to offer tours through the factory and a new building would be safer to bring folks through.

The idea for the tours stems from many requests to see the ulu-making process by visitors to the factory, Gransbury said.

"The new building would help us service our customers better, and they're the No. 1 priority in business," Gransbury said.

Gransbury said he wasn't sure when the new building would go up, but he would like to see construction for the factory begin next year.

The Ulu Factory started 27 years ago in a one-car garage on the East side of Anchorage. The factory is now located in a 12,000-square-foot building on 298 E. Ship Creek Ave.

Gransbury would not disclose company revenues.

The factory produces the Eskimo knives out of American steel coils that are run through a 100-ton punch press to create the shape of the ulu. The metal is then heated to 1,950 degrees, polished and ground on a 16-inch stone to harden the blade.

The blade is topped with a decorated handle carved out of many materials, including Alaska birch and ivory.

Flynn said the railroad is pleased the Ulu Factory wants to build a new building in the Ship Creek area.

"We're trying to increase activity in that area to make Ship Creek a destination," Flynn said.

Flynn said the railroad has been beautifying the area by repairing sidewalks and adding pedestrian areas.

Visitors don't visit that area much and the Ulu Factory could bring "thousands more" people to the area, Flynn said, adding that if Ulu Factory is successful in its new endeavor, more businesses may build in the area.

Each year the corporation makes $10 million from real estate leases, or about 9 percent of its annual revenues.

The railroad's profits, just under $6 million last year, came entirely from its real estate holdings, officials said.

The railroad has operated without a state subsidy because of its land holdings. It has some 17,970 acres along the 525-mile line that is either leased or available for lease, said Flynn.