Tuesday, July 29th, 2008
Minster Machine expects to enter wind industry, add jobs
By Margie Wuebker
Minster Machine Company plans to expand its local facility and create 140 full-time jobs as it enters the wind energy industry, according to a press release issued this morning from the Ohio Department of Development.
The release says the company was approved for a 55 percent, seven-year tax credit from the Ohio Tax Credit Authority for the $4.4 million investment. This would save the company $690,296 in taxes over the term.
The project includes $100,000 in improvements to the existing facility and $4.3 million in machinery and equipment, according to the information the company filed with the state. The information also says the Minster facility on West Fifth Street will be used as its corporate headquarters and manufacturing operation as well as the site for future growth.
Company officials were not available for comment this morning.
The state's release says the tax credit will help Minster Machine expand into the wind energy industry - first as a supplier of machine castings and parts and ultimately as a manufacturer of wind turbines.
"As Minster Machine enters the wind energy supply chain, it must compete with out-of-state suppliers, which comprise 95 percent of the market," company representatives stated in the information submitted to the state.
State incentives are necessary to help the company compete with out-of-state competitors, particularly in Ilinois and Iowa, the information also says. The tax credit also requires the company to maintain operations at the site for at least 14 years.
Additionally, Auglaize County will provide local support for the project through recruitment and testing services valued at more than $93,000.
The company plans to create 140 new full-time jobs within three years of the project's initial operations and retain 445 existing full-time jobs in Minster for twice the term of the tax credit or 110 years.
Statistics Minster Machine provided to the state show the average wage of the new jobs will be $19.33 per hour plus $6.25 per hour in benefits.
Minster Machine is a manufacturer of material forming machine tools, primarily mechanical stamping presses and related material handling equipment. It ships to more than 70 countries throughout the world.
The company, founded in 1896 and incorporated in 1901, in April acquired the assets of Dynamic Feeds Inc. of High Point, N.C. Dynamic Feeds founder Robert Allred joined the Minster company as general manager of marketing and sales working out of the company's division in Beaufort, S.C.