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Nebraska Company Selects MCI Niles Site for Call Center
YOUNGSTOWN, Ohio -- West Corporation is moving ahead with its plans to open an inbound call center at the former MCI building in Niles. "We officially take over that facility as of Oct. 1," said Carol Paden, vice president of investor and public relations for West, based in Omaha, Neb.During a phone interview Tuesday afternoon, Paden told The Business Journal that ads will begin running this weekend seeking employees. She said company officials hope to begin training by the week of Oct., 25, with operations to begin by the end of November. "Our goal is to have approximately 700 employees by the end of November," a combination of full- and part-time workers, she said.On Monday, the Ohio Job Creation Tax Credit Authority approved a 75%, five-year credit by the state agency on corporate income taxes it would pay the state -- contingent on the company maintaining operations in Niles for 10 years. Local and state development officials said Tuesday morning that the company was seeking other incentives before committing to the site, and still needed to firm up a lease for the vacant call center building. However, Paden said, "The decision is made," and faxed a news release dated Monday in which West stated it had selected the former MCI call center in Niles. "We're moving forward now. I don't have any information that would keep us from moving forward," Paden said. "The building has been leased; that's all been finalized."She said the Niles location was chosen following an extensive site selection search involving a number of factors, including the availability of a facility large enough for the company's needs and a workforce with the necessary skills. "We know that there are people in that area that have some similar positions. They've worked in other areas of this industry and they would have the available skill sets that are required to fill these positions," she said.The company told development officials it will invest $1.8 million to set up operations at the former MCI site -- $1.75 million in machinery and equipment and $50,000 in site improvements. Sites in Colorado and Oklahoma were also being considered for the new call center, according to a press release from the Ohio Job Creation Tax Credit Authority. Executives from West Corporation told members of the tax credit authority, meeting Monday in Columbus, that it would hire 492 full-time workers over three years for its new call center, and possibly as many as 500 more part-time workers over 10 years. The workers would process inbound calls on behalf of West's customers who outsource to the company orders for service, requests for product information and inquiries about billing. The company estimated that 3% to 5% of the calls received by the new call center would come from Ohio. Since it will be receiving incoming calls, the center won't be affected by the federal "do not ocvall" legislation that has resulted in layoffs for other telemarking companies, the company said. The Niles site was particularly attractive to the company because it is essentially a "turnkey" facility that can be quickly used, as well as the availability of workers who are already trained in this kind of work such as the former MCI workers, and others who might be interested in that kind of work, said Walt Good, economic development specialist with the Youngstown/Warren regional chamber. Company officials visited the area about a month ago, he added. West Corporation, founded in 1986, employs 27,000 at call centers in North America, India and the Philippines. The jobs at its new call center would pay an annual wage of $9.89 per hour, plus $1.98 per hour in benefits, the company said.The company also is asking the state to subsidize worker training costs, and the city of Niles and Trumbull County to grant a 75%, 10-year tax break on its investment to upgrade telecommunications equipment it would obtain from MCI. Niles City Council is expected to vote on West's request at its Oct. 6 meeting, and Trumbull County Commissioners are expected to act at their Oct. 14 meeting, acording to Mark Zigmont of the Trumbull County Planning Department.West Corporation, traded on the Nasdaq exchange under the symbol WSTC, reported revenues of $573.1 million for the first six months ended June 30. At the close of business yesterday, its stock was trading at $29.05 per share, a record high.MCI, which emerged in April from the largest bankruptcy reorganization in American history, closed the Niles call center in March, idling 700 workers. "Certainly it was devastating when the MCI call center closed but West Corporation is a very well established corproation,' said Julie Michael Smith, regional representative for the Ohio Department of Development. "They're great folks to work with."Finding a suitable occupant for the site was a top priority of local development leaders, said Reid Dulberger, executive director of the Youngstown/Warren Regional Chamber. The Ohio Job Creation Tax Authority also approved yesterday a 55% tax credit for six years for Famous Distribution of Akron to expand operations at the vacant Little Tykes plant in Sebring.The value of tax credit will be $76,794 over the term, and the company would be required to maintain operations at the site for 12 years, state officials said.Famous Distribution is a privately held, family-owned holding company for Famous Supply and its wholly owned subsidiary Pittsburgh Plumbing and Heating. The companies are wholesale distributors of heating, plumbing and industrial building products.The company will establish a central distribution center at the Sebring site, a project that will retain 17 jobs and create 30 jobs within the first three years of operation.Visit West Corporation at www.west.com"