Ohio OKs Tax Credits for Ohio Star Forge Expansion
COLUMBUS, Ohio --The Ohio Tax Credit Authority today approved $107,483 in job creation tax credits for Ohio Star Forge, which is considering a nearly $20 million expansion project at its facility at 4000 Mahoning Ave. N.W., Champion Township. The award is one of 11 the tax credit authority approved today, which combined are expected to result in more than $20 million in new payroll.
State officials point out that the Champion site "has been in competition with a site in Japan for the expansion," states an announcement of today's award released by the Youngstown/Warren Regional Chamber.
The tax credits were offered Ohio Star Forge by the Ohio Development Services Agency in conjunction with JobsOhio. In addition, a state incentive package includes a $30,000 workforce training grant.
The company says it is looking at investing $19,834,000 at its Champion plant including $14 million in machinery and equipment; $3.7 million in building costs; $100,000 in land costs; and about $2 million in other costs.
Ohio Star Forge would create 26 jobs in the first three years of operation and retain 95 jobs. The increased payroll from the new jobs would total $1.4 million. The company will utilize the training grant to train 40 existing workers and 26 new workers within one year of the contract signature date.
Sarah Boyarko, Regional Chamber vice president of economic development, attended the tax credit authority hearing in Columbus.
In addition to helping Ohio Star Forge with the state incentive package, the chamber said it assisted the company in securing a property tax abatement through Trumbull County’s Enterprise Zone program and helped the company obtain a variety of workforce services and training funds committed through the Trumbull County One Stop
“With today’s approval of job creation tax credits for Ohio Star Forge, we are one step closer to this project becoming a reality. Throughout this project, we have been in stiff competition with an international location, so this could result in a big win for Champion Township. These kinds of projects don’t happen overnight or with the assistance of one single group, it is a combined effort of our local and state economic development partners,” Boyarko said.
William Cann, Regional Chamber Economic Development Manager, Trumbull, also is working with Ohio Star Forge on the project.
"As the Trumbull County contact for business retention & expansion, I remain in constant contact with the local business community. I have been working with Ohio Star Forge over the past four months to ensure they were exposed to every program to assist in the growth of their business," Cann said.
Ohio Star Forge is an independent subsidiary of Daido Steel, a specialty steel conglomerate, having operations in the United States and Japan. The Warren facility produces more than 14,000 metric tons of forgings for the automotive and fastener industries. The company has grown in the last 12 years increasing its output to customers an average of 97% annually.
Also approved today by the tax credit authority is a 35%, five-year tax credit for RTS Companies Inc., which plans to create 30 jobs at its plant in Austinburg Towhsip, Ashtabula County. RTS Companies is a manufacturer of custom and proprietary molded plastic products.
MORE - Dec. 6, 2012:
Ohio Star Forges Plant Expansion Plans
Published by The Business Journal, Youngstown, Ohio.
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