Wednesday, July 17, 2013
HUBBARD
VEC Inc. plans to break ground on a $2.5 million expansion at its Erie Street facility by mid-August.
It would be the second major addition at the former Powell Industries building, which VEC purchased last July, converting it into offices and space for fabricating oil and gas equipment.
VEC provides a host of services for the oil-and-gas industry, including power generation, mechanical, electrical, fiber optics, pipeline compressors, pump and meter stations and construction services.
Owner Rex Ferry cited as a reason for the expansion the country’s growing oil-and-gas business and the billions invested by midstream companies throughout Ohio that are working to build the infrastructure necessary to get the resources to market faster.
“Because the oil-and-gas industry is taking off, and because we don’t just work in Warren or Youngstown, we see a lot of opportunity to get in on this growth early,” Ferry said.
The expansion project will include a new fabrication shop, office space and painting facilities. It would create 30 jobs within its first three years of operation.
Ferry said prefabrication saves time and effort in the field. Separators, cooling towers, pipe manifolds and electrical support structures are just a few things that could be built in the new expansion.
VEC also is preparing to open an office in Denver, which has long been a hot spot for oil and gas activity. The company is operating in Ohio, Pennsylvania and West Virginia, and it’s been active in Texas and North Dakota in the past.
VEC employs about 522 workers.
On Monday, Hubbard City Council approved a proposal that would give VEC a 75 percent property-tax abatement over 10 years. The proposal now heads to the Trumbull County commissioners for a vote at their meeting today.
An issue with the U.S. Environmental Protection Agency, which is involved in the permitting of certain construction projects, has slowed down the expansion.
Ferry said if all goes according to plan, though, the company hopes to break ground by mid- August and have employees working at the facility by December at the latest. The structure will be prefabricated and is expected to take less time to build, Ferry added.