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Shovels Turn to Begin Ohio Star Forge Expansion
WARREN, Ohio -- Executives and elected officials broke ground Tuesday for a $20 million plant expansion they say exemplifies the competitive spirit and talent of the Mahoning Valley.
"We were against the whole world with this one," noted Mark Zigmont, a planner for the Trumbull County Planning Commission, who along with others watched as executives of Ohio Star Forge Inc. kicked off a massive expansion of their plant in Champion Township. "They could've done this anywhere, but they decided to do it here," he added.
The company announced last month it would invest $20 million to expand its Mahoning Avenue plant to make room for new equipment, production capacity and jobs here rather than building or expanding operations the company holds elsewhere around the world.
"What's good about this is that when a company spends $20 million, they're going to be around," said Trumbull County Commissioner Paul Heltzel. "They've been established for a long time, and they're here for the long run."
Earlier this year, Ohio Star Forge received $107,483 in job creation tax credits from the state of Ohio, $30,000 in state workforce training grants, as well as a local development package approved by county commissioners that included tax abatements of 60% over 10 years on new real property.
Ohio Star Forge President and CEO William Orbach said Tuesday's groundbreaking was a "culmination" of many players and events "that led to this opportunity."
In April, Orbach reported the expansion would consist of a 33,000-sqaure-foot addition to the south end of Ohio Star Forge's plant at 4000 Mahoning Ave. N.W. The building would house a new, Hatebur hot former, which would enable the company to double its steel capacity to 36,000 tons a year.
Expanding the plant would also add about 30 jobs and $1.7 million to Ohio Star Forge's annual payroll.
The company, in business since 1988, manufactures bearing components for the automotive, off-highway, oil and gas, and industrial markets in the United States. It plans to manufacture its one-billionth part this year.
Ohio Star Forge, an independent subsidiary of Tokyo-based Daido Steel, had also considered a site in Japan for the project.
But, Orbach said in April, the Champion plant proved the better fit since workers there had 25 years of experience in the forging industry, and the management team and the work force understand the U.S. market better than anyone.
In a brief remarks this morning, Orbach thanked the county commissioners, Champion Township trustees, the Youngstown/Warren Regional Chamber and others for their cooperation as the project came together over the last months.
"This is great for Trumbull County," said County Commissioner Dan Polivka. "We're starting to move in the right direction."
Polivka noted the county started to work with the company more than a year ago when it first learned Ohio Star Forge was considering an expansion of its operations. "We worked with them through the planning commission on tax issues," he said.
Commissioner Frank Fuda echoed the optimism, adding the project will bring 30 new, high-paying jobs to the area. "It's the result of people working together, the chamber, the planning commission," he said. "We work together to make things happen in Trumbull County."
Published by The Business Journal, Youngstown, Ohio.
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