LEETONIA - A state tax credit could translate into an additional 65 jobs for Pennex Aluminum Company LLC in Leetonia, according to the Ohio Development Services Agency.
The Ohio Tax Credit Authority approved a 45 percent, six-year tax credit for Pennex on Monday as a result of a planned expansion at the plant site.
It could also mean an additional $35,000 in annual income tax revenue for the village of Leetonia based on a projected increased payroll of $2.3 million.
Leetonia Mayor Artie Altomare said, "That will be great for us."
The village collects a 1.5 percent income tax.
"This is pretty exciting, we're hoping they follow through with the expansion," Altomare said.
According to a press release, Pennex will "retain $3,005,068 in existing payroll at the project location within three years of the project's tax credit effective date at the project location for the term of the tax credit.
"In addition, the company will claim the 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."
Pennex operates a 92,000-square-foot facility, built in 2002, in the Leetonia Trade Park on state Route 344 that is inside the village limits.
The company purchased the building from General Extrusion three years ago.
Based in Wellsville, Pa., the company is a global leader in aluminum part manufacturing that specializes in recycling industrial aluminum to create unique finished products.
As part of the agreement, the OTCA requires Pennex to maintain operations at the expansion location in Leetonia for at least nine years.
Pennex is assessing the most cost-effective location to situate an expansion. Financial assistance
from the state will go a long way to make the state a more attractive and cost-effective destination for the project, the state agency said.
The company's fixed asset investment would be towards expanding an existing building, on-site infrastructure improvements, and new machinery/equipment.
On Nov. 12, the Columbiana County Port Authority, which owns the Leetonia Trade Park, expressed support for the proposed project.
Altomare said the additional jobs will be great for the entire area. email@example.com