YOUNGSTOWN, Ohio -- The Ohio Tax Credit Authority is expected to approve today job-creation tax credits for Exterran Energy Solutions LP, one day before the Houston company plans to break ground for a $13.2 million plant here.
The company plans to build a 65,000-square-foot manufacturing facility on a 20-acre parcel at the Salt Springs Road Industrial Park that previously had been set aside for Exal Corp. to build an additional plant.
A Ohio Department of Development spokeswoman declined to provide additional details regarding the total value of the tax credits until after today’s meeting, pending any potential modifications to the tax credit request at the meeting.
On Friday, Youngstown’s Board of Control approved the transfer of the site to Exterran, which designs and builds equipment used to compress natural gas. The company’s planned investment includes spending $9.5 million for its building and the balance on equipment. Exterran plans to be operating in the facility by the fourth quarter, spokeswoman Susan Moore said.
Exterran Energy Solutions is an operating unit of Exterran Holdings Inc., which last week reported a net loss attributable to stockholders for the fourth quarter 2011 of $66.6 million, or $1.06 per diluted share, compared to a net loss for the fourth quarter 2010 of $118.0 million, or $1.90 per diluted share.
Revenue was $702.9 million for the fourth quarter 2011, compared to $704.5 million for the third quarter 2011 and $615.8 million for the fourth quarter 2010.
Said the company's CEO, Brad Childers, in a prepared statement released Feb. 23, “We continue to see solid demand in North America, particularly in liquids rich and shale gas areas, although uncertainties remain due to relatively low natural gas prices. International markets remain challenging, however we are encouraged by our recently announced contract awards in the Middle East, Bolivia and Mexico.”
The site Exterran is receiving for its plant here is part of a 62-acre parcel for which the city received a $4.9 million Job Ready Sites grant from the state of Ohio to acquire and develop with the intent that Exal, which extrudes aluminum shapes for various consumer products, would move forward on a planned $400 million plant which would potentially employ 400 to 500 workers.
The city has other options for Exal when it decides to move forward with its project, said city economic development director T. Sharon Woodberry. An Exal spokeswoman said the company remains interested in moving forward eventually on the proposed Youngstown expansion.
Copyright 2012 The Business Journal, Youngstown, Ohio.