RMI Titanium plant in running to grow with tax credit help

Tuesday, August 29, 2006 A tax credit will save RMI $118,036 over eight years. By JEFF ORTEGA VINDICATOR CORRESPONDENT COLUMBUS — An official with RMI Titanium says that expansion at its facility in Trumbull County looks promising now that the state has approved a tax credit worth more than $118,000. "Now that this has gone through, there's good reason to want to go forward with the facility," said David Z. Paull, RMI Titanium vice president, referring to its Weathersfield plant. Paull's comments came after the Ohio Tax Credit Authority approved an eight-year 45-percent Job Creation Tax Credit against RMI Titanium's corporate franchise or income taxes. The titanium manufacturer is considering acquiring new machinery and equipment at its Weathersfield facility to ramp up forging capacity. Ohio Development Department officials said the tax credit is worth $118,036 over the life of the credit. State officials say the expansion could result in 35 full-time jobs at hourly wages of $16.37, plus $8.32 per hour in benefits. Rival facility The Trumbull County facility is competing with a rival facility in Hermitage, Pa., for the expansion, Paull said. Among the factors the company will consider are the tax incentives offered by each state. Paull said the company will decide on a site for expansion soon. The company, which registered annual revenues last year of about $347 million, is considering the expansion because of new business. Paull said RMI has signed long-term supply agreements with firms in the commercial-aerospace field. "We think we can expand our capacity; the demand is there," Paull said. Trumbull project In the proposed Trumbull County project, RMI would make a fixed-asset investment of at least $7.5 million, including $100,000 for construction and $7.4 million for new machinery and equipment, according to state documents. Under the proposal, the company would expand forging capacity at its 500,000-square-foot Trumbull County facility. Also, in addition to creating 35 full-time jobs, the company would retain 525 jobs at the Trumbull County site. The proposed tax credit would begin January 2007 and would end December 2014, state officials say.