V&M Star Steel the latest in positive news for Valley
It is easy to get carried away when describing the significance of last week’s announcement that Youngstown-based V&M Star Steel is proceeding with an expansion project that carries a whopping $650 million price tag.
After all, in this economy, any private sector investment is noteworthy. But, when it is a French company that is committing its money to the Mahoning Valley for a world-class, ultra modern steel tube production facility, effusive praise can be pardoned.
In fact, V&M Star officials indicated at the announcement Wednesday that the company’s, Vallourec, headquartered outside Paris, is strongly considering an investment of another $300 million for a melt shop.
In mid-2009, V&M built a new bag house at a cost of $20 million. The system is designed to capture emissions from the Youngstown steel mill.
The “wow” factor can’t be ignored — just as it won’t be later this year when the first Chevrolet Cruze rolls off the assembly line at General Motors Corp.’s Lordstown facility.
When GM announced in August 2008 that it would be investing $350 million in the Lordstown plant, the news swept the Valley, the state and the nation like wildfire. Why? Because of the underlying message from the giant auto maker: We are trusting our workers in the Valley with the new generation of our compact cars, just as we did when we invested $1 billion in the plant for production of the highly successful Chevrolet Cobalt and the Pontiac G5.
If the V&M project and the GM Cruze are the bookends for this region’s economic development endeavors of the past couple of years, what’s in-between also gives credence to Congressman Tim Ryan’s recent characterization of the projects: “This is going to be the miracle on the Mahoning [River].”
While that might come across as political bluster, consider all that has taken place over the past year or so:
UExal Corp. of Youngstown, with two plants in Performance Place on Wilson Avenue producing millions of aluminum cans and bottles and employing 400, has announced plans for the construction of a new 400-employee plant in the Salt Springs Road Industrial Park. Price tag: $100 million for the building and two production lines. Future plans: Six more production lines at a cost of $300 million.
UReinforcement Systems, which began construction of its new manufacturing plant and headquarters in the city of Warren in December. The company, which produces custom welded wire reinforcement used in concrete structures, is investing up to $28 million. It will create 65 full-time jobs.
UPatriot Special Metals, formerly known as Republic Special Metals, is completing the first phase of its plans to create a manufacturing campus in North Jackson. The $64 million, 205,000-square-foot complex is scheduled to start some production this year. It will manufacture specialty steel products for the aviation industry.
UComprehensive Logistics, which is gearing up for the Chevrolet Cruze, is investing over $6 million to provide both assembly of components and “Just in Time” distribution services to GM Lordstown.
UVXI Global Solutions, which is spending $4 million to renovate 31,000 square feet of office space in 20 Federal Place, the former Phar-Mor headquarters in downtown Youngstown owned by the city of Youngstown. About 500 new jobs are expected to be created in the contact center.
UMcHenry Industries is investing over $4 million to build a new production facility in Austintown. The company manufactures wholesale signs.
UDearing Compressor and Pump Company has started construction of a $3 million, 56,000-square-foot addition to its manufacturing operations in Boardman. Like V&M, Dearing is responding to customer demands related to new natural gas exploration in the Marcellus Shale field.
USeverstal Warren is reactivating its steel mill in Warren ahead of its other idled plants around the country.
Finally, the Valley’s push to compete in the high-stakes, global technology arena continues with San Francisco-based Revere Data becoming the latest tenant in the renovated Semple Building in downtown Youngstown. About $1.8 million in state and federal money was used by the Youngstown Central Area Community Improvement Corp. to renovate Semple, which along with the Taft Technology Center and the Youngstown Business Incubator, make up the Tech Block.
In his remarks during the welcoming ceremonies for Revere Data, Congressman Ryan offered this observation:
“We’ve come a long way. This is just the beginning of marketing our Valley as a great place for business.”
The hundreds of millions of dollars from the private and public sectors invested since January 2009 certainly bears that out.
Positive publicity
It is no accident that Entrepreneur magazine included the Youngstown area as one of the top 10 American cities to start a new business in 2009-10. Or that Site Selection magazine included the Mahoning Valley as one of the top 10 metropolitan areas for business expansion in 2009.
Of course, we still have to deal with the fallout from political corruption that has been so much a part of our history, but even with that, times they are a changing — albeit slowly.