Friday, July 14, 2006
A new $11 million machine will help the business attract new markets.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
CHAMPION -- Ohio Star Forge is opening its doors to the community Saturday to show off its latest weapon to combat the Chinese.
A new $11 million forging machine capable of producing larger steel parts will be shown at an open house from 11 a.m. to 3 p.m. at the plant at 4000 Mahoning Ave. A ribbon-cutting ceremony will be at noon.
"Our employees have been asking for an open house for some time, and now we have a reason to celebrate," said Brent Currington, the company's human resource manager.
Officials are upbeat because they think the new machine gives the company an opportunity to grow.
Competitors in countries such as China and Korea have developed the know-how to make bearings, nuts and gears that Ohio Star makes. Rather than continuing to fight for market share against the low-wage producers, Ohio Star is adding a new dimension.
The new machine will turn out larger parts that most foreign producers aren't making, Currington said. Most of Ohio Star's products are bearings.
Also, the expansion will help the company move into new markets, such as mining products. Now, about 70 percent of the company's products are for automotive uses.
Jeff Downing, company president, has said that new equipment can boost annual sales by $30 million over time. Last year, company sales were $36 million.
Possible job growth
Ohio Star, which employs 81, has added 12 jobs in the past two years as the national economy has recovered from the recession. The company's sales were just $22 million two years ago.
Currington said the new forging machine won't add jobs right away, but more workers will be needed if sales spike as expected. Bringing on a new customer can take nine months to a year because of the work that's needed before production begins on a part, he said.
The expansion has been in the works for some time, Currington said.
Trumbull County commissioners approved a tax abatement in January 2005, and then Ohio Star needed approval from its parent company, Daido Steel of Japan. After that was received, the machine was built in Switzerland, taken apart for shipping and then reassembled at the plant.
The first parts were produced last weekend. Ohio Star is continuing production on its three other forging machines.
Ohio Star is located within the former CSC Ltd. property. The steel bar maker closed in 2001, but a new company, American Steel & amp; Alloys, is planning to reopen part of the CSC mill.