Youngstown Tool & Die Plans $13M Expansion, New Jobs

YOUNGSTOWN, Ohio – Youngstown Tool & Die Co. plans to invest at least $13 million to construct a new plant, add equipment, and hire as many as 57 employees over three years, according to documents filed with the city.

Youngstown Tool & Die, currently at 1261 Poland Ave., wants to construct a 60,000-square-foot plant on 10 acres in the Salt Springs Road Business Park – just behind the former Exterran building, said T. Sharon Woodberry, the city’s director of economic development.

“Once it’s finished, they’d move everything over there,” Woodberry said.

An Italian firm, Phoenix International S.P.A., is looking to invest money and expand into the U.S market, and recently acquired the company, said Dave Mrdjenovic, general manager at Youngstown Tool & Die. Terms were not disclosed.

“They’re the largest in Europe,” he said, noting the company commands between 30% and 40% of market share on the continent. The Youngstown venture will be its first investment in the United States. “The U.S. represents a stable market where they can carry on their work. The market is very good, and we’re excited.”

The company manufactures tool and dies for the aluminum extrusion industry, and Phoenix, based in Verdello, Italy, plans to take the business from a regional to a national customer base.

City Council will consider enabling legislation Tuesday that would allow the city’s Board of Control to enter into an enterprise zone agreement with the company. Youngstown Tool & Die has requested a 75% abatement of new real property taxes over a 10-year period to help with construction of a new building, according to an ordinance.

Per the agreement, the company has pledged to invest between $13 million and $15 million to construct a new building and add new equipment. All 43 positions at the company would be retained, and another 57 added over a three-year period, according to the application.

The new positions would add another $2.5 million in payroll to an existing $2 million, according to the application.

New construction costs are estimated at $6 million, while the purchase of new equipment is projected to be another $8 million, along with $750,000 in inventory, according to Youngstown Tool & Die’s application.

Woodberry said the company would receive the standard development incentives such as the tax abatement and a site grant for the land at the city-owned business park. The company will still operate as Youngstown Tool & Die, and the new owners are looking to start work on the project as soon as the development package is approved.

“They’re looking to begin immediately,” she said, and it was important to secure the tax abatements for the project first. The city is still working with the company on the real estate transaction, she noted.

“They want to be in operation in 2019,” Woodberry said.

Employees would also be trained on new manufacturing technologies, as the company expands from a regional and local supplier of tool and die products to a national market.

Youngstown Tool & Die was established in 1961 by Andrew Stanislav as a tool and die manufacturer for the aluminum extrusion industry

“Anytime you have any kind of economic growth, it’s a good thing,” said Mayor Jamael Tito Brown. “Small businesses are what makes communities grow, and we want to be sure we not only retain these businesses, but also help them expand,” he said.

Copyright 2022 The Business Journal, Youngstown, Ohio.