Friday, November 21, 2003
The company is receiving state and city assistance.
SPECIAL TO THE VINDICATOR
COLUMBUS -- Alliance Castings Co. is buying a foundry in Alliance and intends to create 400 full-time jobs.
The State Controlling Board has approved requests from the state Development Department to assist Alliance Castings in buying the former American Steel Foundry building and equipment on East Broadway and renovating the buildings.
The board also approved a $150,000 state grant Monday to the company to help buy equipment.
Once up and running, the Alliance Castings foundry will make about 10,000 railroad car castings per year, state officials say.
The state says total investment at the Alliance site is $14.23 million.
Of that amount, $10 million would be in a bond from the Ohio Enterprise Bond Fund; $2 million would be a seven-year, 3 percent state loan; $150,000 would be a state grant and $2.088 million would be company equity, state documents show.
According to terms of the financial assistance, the state would have first mortgage on the real property and first security interest in the equipment financed with the state assistance.
Corporate guarantees would be required for a share of the outstanding principal and interest, according to state documents. The company also would be required to put up a $1 million bond reserve, state documents say.
Additional state assistance for the project also includes a $200,000 state training grant and a 10-year, 70-percent job-creation tax credit against the company's corporate franchise taxes. The city of Alliance also is offering some incentives, city officials said. Alliance Castings Co. is a wholly owned subsidiary of Ohio Castings Co., a joint venture between Gunderson Inc., ACF Industries and Amsted Industries, the state said.
The controlling board is made up of six state lawmakers and a representative of the governor's office and has the final say over some larger state spending projects.