RMI to seek tax credits in Ohio

Saturday, August 26, 2006 The potential growth could create 35 full-time jobs. By JEFF ORTEGA VINDICATOR CORRESPONDENT COLUMBUS — A Trumbull County-based titanium manufacturer is seeking tax incentives worth more than $118,000 from the state to consider expanding its business in Ohio. RMI Titanium Inc. is to appear before the Ohio Tax Credit Authority on Monday seeking a 45 percent, eight-year state tax credit against corporate franchise or income taxes. Melissa Ament, a spokeswoman for the Ohio Department of Development, said the proposed tax credit is worth $118,036 over the life of the credit. State documents say the company is considering acquiring new machinery and equipment at its facility in Weathersfield Township to ramp up forging capacity. The potential expansion could result in 35 new full-time jobs at hourly wages of $16.37, plus $8.32 per hour in benefits, state officials say. Company officials couldn't immediately be reached. A call seeking comment was left with a company official. Why this is important But, according to state documents, receiving the job creation tax credit will play a big role in RMI's decision to expand in Ohio. "To meet customer demand, RMI is considering increasing its forging capacity at either its facility in the city of Hermitage, Pennsylvania [Mercer County] or in Weathersfield Township," the documents say. "The financial analysis of the two competing sites will include the assistance that state and local governmental agencies are able to offer. The company competes globally, and all of the factors that affect the economic return from the investment are critical to the company." In the proposed project, RMI would make a fixed-asset investment of at least $7.5 million — $100,000 for new construction and $7.4 million for new machinery and equipment, the documents say. Under the proposal, the company would expand forging capacity at its 500,000-square-foot Trumbull facility. Under the proposal, in addition to creating 35 full-time jobs, the company would retain 525 jobs at the Trumbull site. The proposed tax credit would begin January 2007 and would end December 2014, state officials say. The tax credit authority meets at 10 a.m. Monday.