4/2/2013 1:11:00 AM
NEWS BRIEF
Ohio Star Forge formally announced a $20 million expansion in Ohio, aided by tax incentives and a state training grant.
The Ohio Tax Credit Authority approved $107,483 in job creation tax credits for the Warren, OH-based steel manufacturer.
The Ohio Development Services Agency and JobsOhio are providing the 40%, six-year tax credits. The state also is providing a $30,000 workforce training grant. The training program covers 40 existing employees and 26 new workers within one year. The new jobs total $1.4 million in annual pay.
The announcement follows months of competition between local officials and other locations looking to lure Ohio Star Forge away from Champion.
“Jobs Ohio, the Trumbull County commissioners, along with the efforts of other state and local entities, made the expansion project more attractive in Champion,” CEO Bill Orbach told Vindy.com.
Orbach said other locations were considered, but there is need for what Ohio Star Forge – an independent subsidiary of Japan-based Daido Steel – produces here, according the Tribune Chronicle.
‘One of the major components to be here was not only the market demand in the automotive industry but the trend of localization of supply with more Japanese and European countries making their products here,’ Orbach stated said noting they are using American steel and forging their products here.
The Ohio plant uses American steel to produce 14,000 metric tons of forgings for the fastener and automotive industries.
Ohio Forge will invest $19.8 million at the plant, including $14 million in machinery and equipment, $3.7 million in construction, $100,000 for land and $2 million in other costs.
The expansion includes a 33,000 sq ft building addition to the south end of the existing facility, with plans to add machinery that will double the steel produced to 36,000 tons a year.
Ohio Star will add one larger horizontal forging machine, which requires adding manufacturing building and support equipment.
Ohio Star will continue 95 jobs and add 26 new positions. The new jobs total $1.4 million in annual pay.
The project is expected to break ground by mid-April.
Ohio Star Forge is a subsidiary of Japan-based Daido Steel. Ohio Star is located at 4000 Mahoning Ave. (P.O. Box 430), Warren, OH 44482-0430. Tel: 330 847-6360 Fax 330 847-6368 Web: ohiostar.com
Related Stories:
Share: