Let the political bidding start for Vallourec Star’s attention

With Republicans in Ohio bent on holding on to all the state administrative offices from governor on down in this year’s election, and Democrats scrapping to make Gov. John Kasich and his colleagues one-termers, Vallourec Star, one of the Mahoning Valley’s industrial showpieces, is sitting pretty — politically, at least.

Vallourec Star is reportedly on the verge of deciding whether to invest $81.5 million for a new steel-pipe threading factory in Youngstown, and while there is no indication the company is looking for financial assistance from state government, the Republican and Democratic parties in Ohio should be given the chance to show how far they’re willing to go to help make the project a reality.

While it is true that the GOP has the advantage in the state by virtue of its control of the Ohio General Assembly, the Democrats are not without influence. They control the White House and the U.S. Senate.

Indeed, the next head of the U.S. Economic Development Administration is expected to be Jay Williams, the former mayor of Youngstown who played a major role in Vallourec Star (it was formerly V&M Star) and its parent, Vallourec, which has its headquarters on the outskirts of Paris, France, investing more than $1 billion in a state-of-the-art steel pipe-making plant located in the Youngstown-Girard corridor along Route 422.

The continuous production of seamless pipe began Oct. 26. The pipe is being used in the long-term development of shale exploration nationally. There is growing demand for small diameter oil and gas pipe and connection.

The proposed threading facility would be operated by VAM USA LLC, a subsidiary of Vallourec Star. VAM USA is a Houston-based maker of premium pipe connections. Its Youngstown operation, would be located in the former Genmak Steel building, which it bought for $2.5 million last September, and on an additional 67,000 square feet nearby in the city-owned Ohio Works Business Park.

If all the pieces of the puzzle fall into place, 80-plus workers will be employed, with an annual payroll of up to $3.7 million .

VAM USA is receiving a 10-year, 75 percent real-property tax abatement from the city of Youngstown.

State financial backing

We don’t know if that’s all the company has asked for, but we do know that other companies that have located in Ohio have received significant financial backing from the state.

We also know that the administration of President Barack Obama is committed to the creation of manufacturing jobs in the U.S. and has developed various incentive programs to ease the way for private sector investment.

Vallourec has clearly shown its commitment to the Mahoning Valley by the huge investment it has already made, and with its plans for the future.

This year’s statewide and congressional elections offer the ideal setting for voters of the Mahoning Valley to embrace the adage, “All politics is local.”

We have repeatedly called on the Republican and Democratic parties locally, statewide and nationally to recognize that the Valley’s economic revival is a work in progress and that the three decades since the collapse of the steel industry has been one of great economic dislocation.

Today, however, there are very real signs of progress, and Vallourec Star stands out as an example of a company recognizing the advantage of locating in an area that was once a leading producer of steel in the country.

The state and federal governments should not wait to be asked by Vallourec. The Obama and Kasich administrations should be contacting company executives with offers of help.