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Ohio Star Forge Seeks Tax Breaks to Fund Expansion
WARREN, Ohio – A manufacturer in Champion Township is looking to pump between $19 million and $26 million into its existing operations and add new employees over the next three years.
Ohio Star Forge is looking to purchase new machinery, inventory and add another 30,000 square-feet to its operations on Mahoning Avenue, reports Mark Zigmont of the Trumbull County Planning Commission.
The company has applied for a tax abatement of 60% on new construction costs, which are expected to be between $2 million and $3.5 million, Zigmont said.
"They're also looking to hire 26 to 30 more people over the next three years," he added.
Ohio Star Forge plans to add a larger forging machine that is able to handle additional capacity and manufacture larger components. Zigmont said that the total investment stands between $19 million and $26 million when factoring in the purchase of new machinery, payroll and inventory.
Ohio Star Forge, a subsidiary of Daido Steel Ltd., produces 14,000 metric tons of forged parts such as ball bearings, gear blanks and fasteners each year for various industries. Executives could not be reached for comment.
The company employs 98, Zigmont reports, and new employees would be added gradually as the project moves forward. Work on the expansion could begin in January should the tax incentives be approved, he said.
Champion Township trustees approved the abatement package at a meeting Monday, and the Board of Trumbull County Commissioners is expected to consider the measure at its meeting Wednesday.
Copyright 2012 The Business Journal, Youngstown, Ohio.
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