Major Metals Co. now has an approved enterprise zone agreement from the Richland County commissioners and tax credit approval from the state for an expansion project that’s estimated to create $850,000 in new annual payroll for the company.

The Ohio Tax Credit Authority approved a 35 percent, five-year tax credit to Major Metals in a meeting Monday morning for the creation of $850,000 in new annual payroll as a result of the company’s expansion project in Washington Township, according to a release from the Ohio Development Services Agency.

According to the release, the tax credit authority requires the company maintain project operations at the location, 884 Kochheiser Road in Mansfield, for at least eight years.

Part of the expansion includes relocating a large mill from North Carolina to Ohio, and state support will help offset the cost of relocating the mill, according to the release. This action will ensure continued growth at the Ohio facility and prevent an immediate loss of jobs in North Carolina.

Major Metals’ proposed expansion project includes building a new manufacturing facility. The company’s fixed asset investment will go toward constructing the manufacturing facility, according to the release from the ODSA.

According to the release, the company plans to create 18 full-time equivalent employees generating $850,000 in new annual payroll and to retain $2,585,190 in existing payroll by the end of December 2018.

The company also will claim a tax credit on income tax revenue generated at the project location in excess of the company’s baseline income tax revenue at the project location.

The approved enterprise agreement with Richland County provides a 60 percent property tax abatement for 15 years on a new $1.4 million, 48,000-square-foot free-standing building that will be constructed next to the company’s existing facility. The total project value also includes the purchase and relocation of $250,000 worth of equipment and the purchase of new inventory.

The project will bring the total number of jobs at Major Metals to 71 and facility space to 148,000 square feet. The company slits rolled steel and makes round, square and rectangular form-welded tubing for a variety of uses, including frames for temporary structures and rollers used on conveyor lines at large warehouses used by Amazon and United Parcel Service.

Major Metals’ president did not return calls to The News Journal before deadline.

News Journal correspondent Al Lawrence contributed to this report.

 

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