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Projects Expected to Generate Investments to Ohio’s Economy

COLUMBUS – Lieutenant Governor Lee Fisher today announced that the Ohio Tax Credit Authority has approved Job Creation Tax Credits and a Job Retention Tax Credit for 16 businesses involved in location or expansion projects that, if located in Ohio, are expected to create 1,827 jobs, and retain 5,797 positions for Ohioans.

“These companies represent the variety of businesses the State partners with that contribute to Ohio’s overall economic aggressiveness,” said Lt. Governor Fisher, who also serves as Director of the Ohio Department of Development. “Our collaborations with these industry partners reinforces our commitment to diversifying Ohio’s development portfolio while building on our existing strengths.”

Friction Products Company, located in Solon (Cuyahoga County), has been awarded a 40 percent credit for a five-year term to expand its facility. The value of the tax credit is estimated at $49,889 over the term, and the company would be required to maintain operations at the project site for 10 years. Friction Products was founded in 1961 as a manufacturer for metallic brake pads for commercial aircraft. The company's primary product line is brake and clutch friction materials for industrial equipment including construction and mining, aircraft, agriculture, heavy truck, and performance automotive applications.

General Aluminum Manufacturing Company (GAMC), located in both Ravenna and Rootstown (Portage County), has been awarded two 40 percent credits for five-year terms to establish two new facilities. The combined value of the tax credits is estimated at $274,128, and the company would be required to maintain operations at both project sites for 10 years. The credit will support the re-opening of a shuttered manufacturing facility purchased out of bankruptcy by GAMC. The company produces components used in car engines, transmissions, suspension systems, and brake systems. GAMC is publicly-held by Park-Ohio Holdings Corporation, a leading provider of supply-chain logistics services and manufacturer of engineered products. GAMC proposes to re-open aluminum foundries in Ravenna and Rootstown, Portage County. Ohio is in competition with Indiana and Mississippi for the combined $7.7 million projects, which are expected to create a total of 200 positions within the first three years of the projects’ initial operations.

Kettle Creations, to be located in Lima (Allen County), has been awarded a 40 percent credit for a five-year term to establish a new facility. The value of the tax credit is estimated at $179,564 over the term, and the company would be required to maintain operations at the project site for 10 years. Kettle Creations is a new food processing company that plans to manufacture refrigerated mashed potatoes and sell them to private label distributors, restaurants, and grocery stores. The company will build a 100,000 square foot facility, and the facility will be used to house manufacturing operations of refrigerated mashed potatoes for distribution. Ohio is in competition with Indiana for this more than $21 million project, which is expected to create 100 positions within the first three years of the project's initial operations.

A. Schulman, Inc., located in Akron (Summit County), has been awarded a 45 percent credit for a five-year term to expand its facility. The value of the tax credit is estimated at $209,175 over the term, and the company would be required to maintain operations at the project site for 10 years. A. Schulman is a leading international supplier of high-performance plastic compounds and resins, which are used as raw materials in a variety of markets. The company’s principal product lines connsist of proprietary and custom-formulated engineered plastic compounds, color concentrates and additives that improve the appearance and performance of plastics in a number of specialized application.

Bardwil Industries, Inc, has been awarded a 45 percent credit for a five-year term to establish a new facility. The value of the credit is estimated at $141,343 over the term, and the company would be required to maintain operations at the project site for 10 years. Bardwil is a private company established in 1907. The company began as an importer and added domestic manufacturing over the years. In keeping up with the changing global economy Bardwil has again become a 100 percent import company importing its product from India, Taiwan and China. Bardwil is headquartered in Jersey City, New Jersey, where it also maintains a showroom and a distribution facility. Currently Bardwil has a license agreement with Lenox to distribute their table linens and bath products.

GXS, Inc., located in Brook Park (Cuyahoga County), has been awarded a 45 percent credit for a six-year term to expand its facility. The value of the tax credit is estimated at approximately $637,486 over the term, and the company would be required to maintain operations at the project site for 12 years. GXS is a leading worldwide provider of business-to-business EDI and supply chain integration, synchronization and collaboration solutions. GXS has over 1,800 employees and 400 contractors in 25 countries, and approximately 750 employees in the United States. The project includes the expansion of its existing facility in Brook Park to include a state-of-the-art, world class command and control center that would optimize workflow by placing customer-facing and operational support personnel in the same facility.

Ohio Basic Minerals, LLC, located in Liberty Township (Jackson County), has been awarded a 45 percent credit for a six-year term to expand its facility. The value of the tax credit is estimated at $68,571 over the term, and the company would be required to maintain operations at the project site for twelve years. Ohio Basic Minerals, established in 2007, produces and sells sand and gravel from leased quarries in Jackson County, in Southern Ohio. The project in Liberty Township includes the installation of new machinery and equipment and infrastructure including the installation of a new sand dryer, increased storage capacity, construction of new truck and rail loading facilities, and increased sand and gravel production. Ohio is in competition with Kentucky and West Virginia for this more than $6 million project and it is expected to create 30 positions and retain 7 jobs within the first three years of the project's initial operations.

Sanoh America, Inc., to be located in Mount Vernon (Knox County), has been awarded a 50 percent credit for a six-year term to establish a new facility.

The project in the City of Mount Vernon includes leasing a newly constructed building that is larger than its current building. Sanoh will make a fixed-asset investment of at least $2 million in machinery and equipment. The company will lease a 200,000 square foot facility , allowing Sanoh America to consolidate three existing buildings into one in Mount Vernon. The new facility will be a state of the art chassis plant. Ohio is in competition with Indiana and Kentucky for this project, creating 50 new full-time jobs and retaining 213 within the first three years of the project’s initial operations.

Cornerstone Research Group Inc, located in Xenia (Greene County), has been awarded a 50 percent credit for a seven-year term for the company’s relocation and expansion in the City of Xenia. The value of the tax credit is estimated at approximately $847,856 over the term, and the company would be required to maintain operations at the project site for 14 years.

Exxcel Project Management, located in Marble Cliff (Franklin County), has been awarded a 50 percent credit for a seven-year term for the company’s relocation to Marble Cliff. The value of the tax credit is estimated at approximately $205,412 over the term, and the company would be required to maintain operations at the project site for 14 years. Exxcel provides development, design, and construction services for capital projects for its customers. The company specializes in light industrial projects and has completed capital projects for companies ranging from Pizzuti Development Inc.

Snap-On Business Solutions has been awarded a 50 percent credit for a seven-year term for the company’s relocation to Medina or Summit County. The value of the tax credit is estimated at approximately $455,772 over the term and the company would be required to maintain operations at the project site for 14 years. Snap-on, a subsidiary of Snap-on Inc. (NYSE SNA), is a global provider of enterprise data software and services focused on the Automotive, Power Equipment and Powersports markets in addition to Performance Improvement and Warranty Solutions. Within these five product lines, Snap-on provides innovative solutions for managing enterprise data.

Cleveland Cliffs, Inc., located in Cleveland (Cuyahoga County), has been awarded a 55 percent credit for a seven-year term to expand its facility. The value of the tax credit is estimated at approximately $999,997 over the term, and the company would be required to maintain operations at the project site for 14 years. Cleveland-Cliffs is an international mining company headquartered in the City of Cleveland. The company was founded in 1847 and is now the largest producer of iron-ore pellets in North America. The publicly traded firm operates ore and coal mines in Alabama, Michigan, Minnesota, and West Virginia as well as in Eastern Canada, Australia and Brazil. The company employs approximately 5,300 people worldwide. Cleveland-Cliffs works with some of the world’s leading producers of alternative fuel sources to determine more environmentally safe methods of mining production.

The Minster Machine Company, located in Minster (Auglaize County), has been awarded a 55 percent credit for a seven-year term to expand its facility. The value of the tax credit is estimated at approximately $690,296 over the term, and the company would be required to maintain operations at the project site for 14 years. Minster Machine is a manufacturer of material forming machine tools, primarily mechanical stamping presses and related material handling equipment including long term after market parts, service, rebuild and transportation. A private company, Minster Machine was founded in 1896 and incorporated in 1901. The project in the Village of Minster includes improvements to its existing facility and the acquisition of capital equipment.

Ford Motor Company, located in Bath Township (Allen County), has been awarded a 60 percent credit for a seven-year term to expand its facility. The value of the tax credit is estimated at approximately $1,703,575 over the term, and the company would be required to maintain operations at the project site for 14 years. Ford began a manufacturing revolution with its mass production assembly lines in the early 1900s. Today, the company is one of the world's largest makers of cars and trucks. It makes vehicles under brand names including Ford, Lincoln, and Mercury. Ford sells vehicles in more than 200 countries and territories around the world, has manufacturing facilities on six continents, and employs 300,000 people worldwide. Ford also owns a controlling (33 percent) stake in Mazda Motor Corporation. Ohio is in competition with Michigan and Mexico for this more than $12.6 million project, creating 219 full-time jobs and retaining 762 existing full-time jobs within three years of the project’s initial operations.

Willard & Kelsey Solar Group, LLC, located in Perrysburg (Wood County), has been awarded a 60 percent credit for a ten-year term for the company’s relocation to Perrysburg. The value of the tax credit is estimated at approximately $3,547,253 over the term, and the company would be required to maintain operations at the project site for 20 years. Willard & Kelsey was formed in November 2007. Willard & Kelsey is an Ohio Limited Liability Company formed for the purposes of developing and manufacturing thin cell solar panels for worldwide distribution. Willard & Kelsey is proposing to locate its headquarters, research and development and initial production operations in the City of Perrysburg. The project includes the acquisition of a 252,000 square foot manufacturing facility to house four production lines for the manufacturing of a vacuum-coating, patented, proprietary system for the production of new thin cell solar panels. Ohio is competition with Kentucky, Florida, and Mississippi for this $105 million project, creating 400 new full-time jobs and retaining 10 existing full-time jobs within three years of the project’s initial operations.

General Motors Corporation, located in Lordstown (Trumbull County), has been awarded a 75 percent credit for a fifteen-year term for the company’s expansion of its facility.

General Motors Corporation, located in Lordstown (Trumbull County), has been awarded a 75 percent Job Retention Tax Credit for a fifteen-year term for GM’s retention of its employees. The value of the tax credit is estimated at approximately $77,745,926 over the term, and the company would be required to maintain operations at the project site for 30 years.

The Job Creation Tax Credit is a refundable tax credit against the Commercial Activity Tax or income tax. The credit equals a percentage of new state income tax withheld on new, full-time employees in Ohio.

The Ohio Tax Credit Authority is a five-member independent board consisting of taxation and economic development professionals from throughout the State that is responsible for reviewing and approving applications for state tax credit assistance. The Authority also has oversight responsibilities that include monitoring and reporting the progress of approved tax credit projects. The Ohio Tax Credit Authority’s approval of incentives indicates the State’s commitment to the company, and precedes a final decision of the company to accept or decline the tax incentives approved.