YOUNGSTOWN Cold Metal adding equipment

New equipment is expected to create about 20 jobs at the Youngstown plant.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
YOUNGSTOWN -- Cold Metal Products is adding nearly $3 million in equipment to its Youngstown plant despite difficult economic times.
Investing in the plant now should lead to the hiring of between 16 and 24 people in the next three years as economic conditions improve, said Drew Munera, divisional general manager.
The equipment being added will open up new markets and improve product quality, he said.
"When our markets do turn around, we will be well-positioned to exploit that upturn," he said.
For now, however, these are difficult times for the steel processor, which has headquarters in Sewickley, Pa., but a plant in Youngstown and office in Boardman. It has lost money for four straight quarters.
Munera said the Youngstown plant, which employs 125, has lost customers during this time but recently has started adding new ones. The plant processes high-quality steel for uses such as automotive bearings and cutting tools.
Equipment moved: Cold Metal has been restructuring its operations as it tries to weather the economic downturn. Part of the plan was closing its plant in New Britain, Conn., and sending some of the equipment to the Youngstown plant.
Munera said four pieces of finishing equipment will be added through March. The first piece was to arrive Tuesday. The equipment will improve the plant's capabilities, such as adding precision edging to steel.
Cold Metal also is buying new annealing equipment for the plant. The State Controlling Board has approved a $1.2 million loan that will help the company buy this equipment. The seven-year loan has a 3 percent interest rate.
During annealing, steel is heated so it becomes soft, which allows the metallurgical properties of the steel to be adjusted.
Munera said the new equipment will give the plant a higher production rate and allow it to give the steel more uniform properties.
Cold Metal buys coils of steel from steelmakers and processes the steel.
Munera said the new equipment and the equipment from the Connecticut plant will allow the Youngstown plant to expand into new markets, but he didn't want to be specific.
Company officials have plans to add more equipment to the plant but those plans depend on economic conditions, he said.
Cold Metal employs 600 at seven plants in the United States and Canada.
shilling@vindy.com