Exal receives $7 million for new factory in city

Exal Corp. began operations in Youngstown in 1993.
By JEFF ORTEGA
VINDICATOR CORRESPONDENT
COLUMBUS -- Exal Corp. received $7 million in state-backed funding Monday to help build a manufacturing facility next to the aerosol-can maker's plant in Youngstown.
The Development Financing Advisory Council approved a $5 million Ohio Enterprise Bond Fund loan and a $2 million low-interest state loan for the company.
The approved financing will help the company build a 165,000-square-foot building next to its 300,000-square-foot plant to house four new manufacturing lines. The primary product will be aluminum beverage bottles for Anheuser-Busch and Coca-Cola, according to documents filed with the state.
Delfin Gibert, chief executive officer of the Exal Group, said the company already has broken ground on the project and expects to finish it in March.
New jobs anticipated
Gibert said the project when completed should result in the creation of 118 jobs. The company employs about 280 now.
State documents said the hourly wages of the jobs will be $13, with an additional $5 hourly for benefits.
According to the state, the total construction cost is estimated at $11.3 million. The 10-year $5 million Ohio Enterprise Bond Fund loan has a 5.05 percent interest rate, and the 10-year $2 million state loan has a 3 percent interest rate, state documents show. Bank and other financing is arranged for the balance of the project, Gibert said.
The state loan will be secured by a shared first mortgage on the building, state documents say.
The state said construction will take up $9.5 million of the total project funds, with $270,000 for the land; $206,467 for capitalized interest; $308,750 in transaction fees; and $1 million in bond reserve.
Container makers
Exal Corp. makes and labels aluminum containers and bottles. The company's market includes personal care, hair care, beverage, pharmaceutical and automotive products, state officials say.
The company began operations in 1993 in Youngstown with one line and 30 employees, state officials say. Since then, the company has expanded the original 100,000 square-foot facility three times.
The state said other state assistance committed to the Exal project includes a Job Creation Tax Credit of 55 percent for one year and 60 percent for the following nine years.