LEETONIA - A state tax credit could translate into an additional 65 jobs for Pennex Aluminum Co. in Leetonia, according to the Ohio Development Services Agency.
The Ohio Tax Credit Authority approved a 45 percent, six-year tax credit for Pennex on Monday as a result of a planned expansion at the plant site.
It could also mean an additional $35,000 in annual income tax revenue for the village of Leetonia based on a projected increased payroll of $2.3 million.
"That will be great for us," Mayor Artie Altomare said.
The village collects 1.5 percent in income tax.
"This is pretty exciting, we're hoping they follow through with the expansion," Altomare said.
Pennex operates a 92,000-square-foot facility, built in 2002, in the Leetonia Trade Park on state Route 344 that is inside the village limits. The company purchased the building from General Extrusion three years ago.
Based in Wellsville, Pa., the company specializes in recycling industrial aluminum to create finished products.
As part of the agreement, the OTCA requires Pennex to maintain operations at the expansion location in Leetonia for at least nine years.
Pennex is assessing the most cost-effective location to situate an expansion. Financial assistance from the state will go a long way to make the state a more attractive and cost-effective destination for the project, the state agency said.
The company's fixed asset investment would be toward expanding an existing building, on-site infrastructure improvements, and new machinery/equipment.