City OKs plan to relocate Colonial Metal

HERMITAGE, Pa. -- City commissioners gave their approval Thursday to a land development plan that will allow Colonial Metal Products Inc. to move from its plant on Railroad Street in Wheatland to larger facilities at 1001 Ohio St.
The company is buying its new location and expanding the facility from 28,000 square feet to 37,000 square feet in a project costing $3.1 million.
The company, a steel sales and slitting service center, will add a new slitting line and three cranes as part of the project.
Colonial Metal has 18 employees now and will add 10 more with this project.
The city is also providing the company with some low-interest loan funds to help with the expansion.
The commissioners approved a $120,000 loan at 4.4 percent for seven years from the city's revolving loan fund last month.
Gary Gulla, assistant city manager, said Colonial Metal is reworking its financing package and will have to come back to the city for re-approval of the loan next month.
The amount will be the same but the city's collateral position on company assets will be changed, he said.