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Pennex Aluminum to Invest $33M at Leetonia Plant
LEETONIA, Ohio -- Pennex Aluminum Co. today confirmed that it plans to invest $33 million to expand its extrusion facility here. The investment at the Leetonia Trade Park will include a new extrusion press line, a specialized fabrication production center, and a 170,000-square-foot addition to its building.
The project is expected to create 65 new jobs with the new capacity scheduled to come on line in late 2014.
“This expansion involves advanced technology that will provide unique capabilities to serve our customers," said the president of Pennex, Dave Riebe, in a prepared statement. "The Leetonia facility is state-of-the-art with a highly motivated and productive team of people. We are excited for our employees and the community as the expansion will bring new jobs and opportunities."
Tracy V. Drake, CEO of the Columbiana County port Authority, which owns the Leetonia Trade Park, called the $33 million project "one of the largest advanced manufacturing projects to be undertaken in the county in recent history."
The Pennex Leetonia facility is TS 16949 quality certified, and "has a proven track record for meeting the most demanding automotive and engineered product requirements," according to the company announcement.
The expansion builds on Pennex’s 35-year heritage of creating high quality extruded aluminum products to meet the specialized needs of its customers.
Said the CEO of Pennex, Rick Merluzzi, in a prepared statement. “This significant investment reflects our unwavering commitment to serve our long term customers and prospective customers. The Leetonia expansion follows Pennex’s acquisition of the facility in 2010, the expansion of the York, Pa., fabrication facility in 2012, and the 2013 acquisition and restart of the billet casting operation in Greenville, Pa. Such growth is a tribute to the incredible dedication and hard work of all our employees.”
The state of Ohio approved a 45%, six-year tax credit for this project.
“We are grateful for the state’s tax credits, Leetonia’s support of a 100%, 15-year tax abatement, and the Columbiana County Port Authority’s partnership with us to facilitate this investment," said Riebe.
Drake said the port authority is working with Pennex and Neotec to analyze potential benefits to Pennex of the Leetonia Trade Park's status as a Foreign Trade Zone.
"The port authority has invested approximately $5 million to build the Trade Park and this expansion shows that our investment is paying off," Drake said. "Pennex is one of the best-run companies in the U.S. and this expansion, which is not part of the shale industry, will help diversify Columbiana County's economy for the long term."
Pennex Aluminum Co. LLC is a subsidiary of St. Louis-based Metal Exchange Corp., one of the world’s largest suppliers, processors, and purchasers of non-ferrous metals. Pennex extrudes aluminum parts used in manufacturing and specializes in recycling aluminum to create unique finished products used every day. They company said it offers turnkey solutions to create specific aluminum chemistry, extrude unique aluminum shapes, and fabricate finished products to design requirements with world class quality and delivery.
SOURCES: Pennex Aluminum Co., Columbiana County Port Authority.
Published by The Business Journal, Youngstown, Ohio.
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