Youngstown Tool & Die Gets Tax Credit for $12M Project
YOUNGSTOWN, Ohio – Youngstown Tool & Die LLC will decide in the next couple of months whether to move forward with a proposed $12 million project here, a company official said Monday.
On the table for Youngstown Tool & Die is the construction of a 60,000-square-foot manufacturing plant at the Salt Springs Industrial Park. The Ohio Tax Credit Authority approved Monday a 1.467%, seven-year Job Creation Tax Credit in support of the project, which would generate $2.5 million in new payroll and retain $2 million in existing payroll by the end of 2021.
It also would create 60 full-time equivalent jobs, bringing total employment to 100.
The company, a manufacturer of extrusion dies and tooling for the aluminum extrusions industry, was purchased last year by Phoenix International, S.P.A., based in Italy. Now located on Poland Avenue, Tool & Die would relocate operations to the Salt Springs park.
To qualify for the tax break, the company would be required to maintain operations at the site for at least 10 years, according to documents form the Ohio Development Services Agency. Sites in Indiana, Pennsylvania, Michigan and Illinois are also in contention for the project.
“We’re working through all the pieces,” said Dave Mrdjenovic, general manager, in an interview following approval of the state tax credit. “There’s a lot to do to button this up, but this is one piece of it that allows us to commit to Ohio.”
The company will decide during the first quarter of this year whether to move forward on the Youngstown expansion, he said.
“Today’s approval is another step forward towards securing this investment for the city of Youngstown,” said Lauren Johnson, business development manager for the Youngstown/Warren Regional Chamber.
The chamber has worked with Youngstown Tool & Die since December 2017, she said, assisting in helping the company identify a property and coordinate state and local incentives.
The city of Youngstown also supported the project with a 10-year, 75% abatement on new real property taxes.
According to the Ohio Development Services Agency, the project calls for increasing Youngstown Tool & Die’s operational capacity. The company’s investment would go toward construction of the new building, as well as new machinery and equipment.
The expansion will help the company compete in the global marketplace, according to Mrdjenovic.
“Youngstown Tool & Die needs to grow and flourish,” he said. “In this competitive marketplace, the only way to survive is to grow.”
OhioMeansJobs also has offered support for training, Johnson said.
In a release Monday afternoon, Ohio Sen. Michael Rulli, R-33, congratulated Youngstown Tool & Die on the tax credit.
“Youngstown Tool and Die is an honest and longstanding local company in Youngstown who is deserving of this opportunity,” Rulli said. “I look forward to seeing them continue to grow their operation and employ more of the hard-working people in our district.”
During Monday’s meeting, the tax credit authority approved assistance for a total of five projects expected to create 836 new jobs and retain 939 jobs statewide, the office of Gov. Mike DeWine reported. The projects also are expected to generate $41 million in new payroll and spur more than $216 in investments across the state.
Pictured: Youngstown Tool & Die’s current building on Poland Avenue. If the project moves forward, the company would build a new site at Salt Springs Industrial Park.
Copyright 2024 The Business Journal, Youngstown, Ohio.