Nordson Gets Tax Credit for Plant Consolidation
AUSTINTOWN, Ohio – Negotiations are ongoing with local and state officials for incentives to encourage Westlake-based Nordson Corp. to consolidate its screw and barrel operations in Youngstown, New Castle, Pa. and Pulaski, Va., to the former Tamarkin warehouse here on Victoria Road.
One piece of the financing puzzle fell into place Monday with the Ohio Tax Credit Authority’s approval of a 2.317%, eight-year job creation tax credit for Spirex Corp.
“The job creation tax credit and other assistance is a necessary part of securing this investment for Mahoning County,” reported Sarah Boyarko, senior vice president, economic development for the Youngstown Warren Regional Chamber, who has been working with Nordson’s consultant.
Spirex, doing business as Nordson Xaloy Inc., was purchased by Nordson as part of its acquisition of Xaloy Holdings in 2012, reported James Jaye, senior director, communications and investor relations, with Nordson.
Nordson Xaloy operates a plant at 8469 Southern Blvd. that designs and makes feed screws and components for injection and extrusion machinery. When it was purchased in 2012, Xaloy was headquartered in New Castle, Pa., where the plant continues to operate at 1399 Countyline Road. The Pulaski, Va., plant was also part of the Xaloy purchase.
“As we announced in September, Nordson expects our transition to an existing facility in Austintown to be completed over the next 18 months, subject to the conclusion of customary negotiations with local and state officials,” Jaye said.
“These negotiations are ongoing and it would be premature to comment until they are concluded,” he continued. “We can confirm that we are seeking all incentives for which we are qualified and that are appropriate.”
Spirex designs and manufactures plasticizing unit products in North America. The company, which is unable to expand at the Boardman site, expects to create 143 full-time positions, generating $7.7 million in new annual payroll and retaining $6.3 million in existing payroll, according to the state’s announcement of the tax credit.
The company has 106 Ohio employees now. The reimbursable tax credit would apply to the new-to-Ohio positions, Boyarko said.
“We’re extremely pleased about today’s approval of the job creation tax credit. The company is one step closer to finalizing its decision,” she said. “We still need to go through the process of shoring up some local due diligence prior to the company making a final announcement.”
Although the company hasn’t expressed any “specific timeline,” she believes “the remainder of the local activity” could be finalized in the next 30 to 60 days. In particular, the chamber is working with local workforce providers and the township to explore additional assistance.
Pictured: Nordson’s ColorMaxE powder paint spray system is shown painting lawn mower frames. Photo provided by the company.
Sept. 16, 2016:
Nordson to Consolidate 3 Xaloy Plants in Austintown
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