And we’ve had some success. I’m not going to mention the specific customers. We’ve got NDAs in place. But we have had some success with that. So that allows us to utilize our capacity better without having to add it, but also take out capacity out of the market. So those have been our two strategies between the two businesses as we get in, we just completed our strategic plan and there is going to be demand — capacity demand increase, particularly on the coal coating side going forward. We did not make any specific commitments as to the need for building another greenfield but continuing to look at how can we squeeze capacity out of our existing footprint. So that’s an ongoing exercise every year. And — but yeah, we’re very comfortable with the facilities we have right now.
We think we can drive organic growth just by continuing to add services to what we do Supply Chain Solutions is what we call it for Precoat. We do — we have similar opportunities with the metal coating side. So just continuing to take share with our current businesses.
Lucas Pipes: That is very helpful. Thank you. Quick follow-up on this — the vertical integration of vertical capacity at some of your customers, what would be the kind of the pitch to customers, what do you think you would add the most value in such a buyout?
Tom Ferguson: Yeah. I think for us, it’s — this is what we do for a living. So our lines are going to tend to be faster than theirs. If they’ve got really, really old technology. It may be running at a quarter to a third of the line speed we can give them. We also can do a better job of providing them different color schemes. We’ve got our own color blending capability. And just quite frankly, we’re operating 13 plants, 15 lines. They’re operating one and it’s not their core business. So taking those assets, and we’re not talking about large amounts of money, but we are to take those assets off their books. But it is the kind of thing that can give us another 20,000 tons, 25,000 tons of demand for our current facilities. And so that comes down to proximity of our locations them being able to depend on our capabilities, which we have a great track record to do it.
Lucas Pipes: That’s very helpful. Thank you for that color. A quick one for a second question. Just kind of leverage targets longer term, could you remind us where your head is at right now, given rates and broader backdrop on financing markets. Thank you very much.
Philip Schlom: Yeah. We ended the quarter at around 3.4 times leverage with a target to get down to 3 times leverage by the end of the year with the change in the facility for Washington, we still are on track to get in that range. So we’re pulling all stops to continue to focus on our working capital.
Tom Ferguson: Yeah. We’re not changing our targets at this point and that’s why we felt comfortable moving from a sale leaseback into funding it ourselves. Both our current debt reduction so far year-to-date, the improvement in – small improvement in the repricing of our current debt and just the ability to go ahead and perform on our working capital. So stick with the target.
Lucas Pipes: Very helpful. Gentlemen, really appreciate it, and continued best of luck.
Tom Ferguson: Thanks, Lucas.
Operator: The next question comes from John Braatz of Kansas City Capital. Please go ahead.
Jonathan Braatz: Good morning, everyone.
Tom Ferguson: Good morning.
Jonathan Braatz: Phil, the repricing of your debt, assuming no additional interest rate increases, are we talking about $5 million in annualized interest savings?
