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VEC Wants to Start Soon on Evets' Expansion Project
WARREN, Ohio -- Construction of VEC/Evets Electrical Inc.’s planned expansion at its Erie Street plant in Hubbard could be under way as soon as next week. VEC is waiting for final approvals from its lenders and the U.S. Environmental Protection Agency before moving forward on its proposed 27,000-square-foot expansion to the former Powell Industries building, said Rex A. Ferry, CEO and chairman of VEC Inc.
VEC purchased the building about a year ago. Its Evets division operates a a fabrication shop there.
“We’re waiting on some EPA studies to be completed,” Ferry said. The building “pretty much had a clean bill of health” when VEC bought it but lenders for the $2.45 million project wanted to revisit the issue. VEC is reviewing the Phase 1 assessment. From what Ferry understands, VEC should only need to continue to monitor and maintain the site.
“We’re waiting for the final version from the banks and the EPA,” he remarked. “If I get the OK on Friday, we’re putting a hoe in the ground on Monday.”
The project got a boost Wednesday when the Trumbull County Board of Commissioners voted to approve a 10-year, 75% abatement on new real property investments. Hubbard City Council had signed off on the abatement Monday night (READ STORY).
About 20,000 square feet of the expansion will be for production space and the remaining 7,500 will be for office, Ferry said. According to county documents, VEC anticipates spending $1.75 million to $2 million for new construction associated with the project and $350,000 to $400,000 for new machinery and equipment.
The expansion will create positions for skilled labors such as welders as well as engineers. The average welder earns $30 to $40 per hour, and can make $80,000 to $100,000 annually “depending on who hard they want to work and the hours they want to work," Ferry said.
The project, which will retain 20 jobs and add 30 jobs over a three-year period, is being driven by the expansion of VEC’s work in the oil and gas industry, Ferry said. VEC purchased Evets Oil & Gas Construction Services in 2003.
“We have a leg up on what’s going on in the Valley. We’ve worked all over the United States in this industry and we’ve seen what’s going to happen,” Ferry said. Williamsport, Pa., a community similar to Youngstown, is “exploding,” he observed. “Hotel rooms are full. Good things are happening.”
William Cann, Trumbull County business development manager for the Youngstown/Warren Regional Chamber, called the expansion project “a strategic decision by VEC to better meet the needs of their customers. Company officials see an uptick in activity and expect that to continue in the future, “which is why they’re considering this expansion,” he said.
“We want to thank you for investing in Trumbull County,” Commissioner Frank Fuda told Ferry.
“It’s well worth the value of the abatement,” he said. “These are very good jobs for Trumbull County.”
Copyright 2013 The Business Journal, Youngstown, Ohio.
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