Economic development loans recommended by the state of Ohios Development Financing Advisory Council will help several plastics-related firms in the state boost employment and business. Pending State Controlling Board approval, the total amount of loans are expected to generate $55.9 million in investment in the state, retain 512 jobs, and create 918 new ones.
Injection molder and moldmaker Ferriot Inc. (Akron, OH) will receive a $1 million 166 direct loan with a 3% interest rate and 10-year term to acquire machinery and equipment as part of its push into injection molded siding for housing and commercial buildings. The project has a budget of $4.9 million and is expected to retain 139 jobs, while creating 50 new ones within three years.
Ohios 166 Direct Loan program provides low-interest loans for land and building acquisition, construction, expansion, and renovation as well as equipment purchases. Rates for these are negotiable for five to 15 years, with the only stipulation being recipients must create or retain one job for every $35,000 received.
UltraCell Corp. (Vandalia, OH), which manufactures micro fuel-cell systems, including methanol-based fuel cells, was granted a $5 million 166 direct loan, with an initial interest rate of zero for the first year, 3% thereafter for the 10-year term. The company has plans to invest $21 million in new machinery and equipment as part of a $26.2 million project that will retain three positions and create 235 new ones within three years.
Springfields TPI Composites, which creates advanced composites for the wind energy, transportation, and defense markets (see May 2005 MPW for more on TPI), was granted a 7-year, $1-million, 166 direct loan that it will use to buy equipment and machinery. TPI wants to move its composite deck-railing prototype operation from Rhode Island into a leased 44,000-sq-ft building in the Springfield Airpark. Budgeted at more than $4 million, the project is expected to create 300 jobs at the project site within the first three years.
In addition, The Dayton Business Journal is reporting that custom molder Polymeric Products Inc. (Dayton, OH) was granted a 7-year, $420,000 loan from the state to pay for new machinery and equipment. The company reported that it expects to save 35 full-time jobs with the money and add 60 more.[email protected]