$20 million awarded for V&M Star expansion project

COLUMBUS — A total of $20 million in federal stimulus dollars will go toward what Youngstown officials have called one of their top economic priorities — the expansion of V&M Star Steel.

Gov. Ted Strickland announced today that federal officials have signed off on the funding to relocate rail lines near V&M’s current property, opening about 100 acres on the border of Youngstown and Girard for future development.

“This is a significant shot in the arm to the state of Ohio, but certainly to Youngstown and Girard and the Mahoning Valley,” Youngstown Mayor Jay Williams said shortly after the news was announced. He added, “In these most bleak of economic times, that this commitment is coming forth from the state is tremendous.”

V&M Star manufactures steel tubes for the oil and gas industry. It is considering an expansion at a site on the border of Youngstown and Girard. The project would nearly double the company’s steel production and lead to the creation of 294 jobs and the retention of 465 existing ones.

The company has not committed to the project but has continued to work with the state on the required permits and economic incentives.

“I have spoken with the executives at the company who are still committed to the project,” Williams said. “They have asked Youngstown to continue moving forward with land acquisition and some of the work being done.”

In addition to the direct jobs, the federal stimulus award will mean several hundred construction jobs over a two-year period, Williams said.

For more on this story, see Friday’s Vindicator or vindy.com