REGION Delphi, new GM supplier are granted state loans
THE VINDICATOR, YOUNGSTOWN
Each plant is expected to employ about 180 people.
YOUNGSTOWN -- State loans will help a new General Motors supplier moving into the area and a new plant to be built by Delphi Packard Electric Systems.
The Development Financing Advisory Council approved a $5 million loan Monday for Packard's planned plant in a new industrial park in Vienna Township near the Youngstown-Warren Regional Airport.
The plant, which will make plastic clips and connectors for wiring systems, will employ 180. Packard has been buying new plastic molding machines and moving that operation from Warren to other plants.
Packard officials recently told Trumbull County commissioners they were scaling back their investment in the plant from $75.5 million to $58.5 million but said they weren't sure when construction would start. The new plant is to receive a tax abatement from the county.
The state loan will have a 3 percent interest rate for 10 years.
Start-up: Also, the State Controlling Board granted a low-interest, $1.55 million loan to Android Industries-Lordstown LLC for start-up costs for a plant that will assemble powertrain modules, front suspensions, rear axles and condenser radiator fan modules.
Android is planning on starting operations at Packard's former plant on Ridge Road in Vienna.
Android would supply the GM Lordstown Assembly Plant. Union officials have said the work Android is doing must be moved out of the plant for GM to start a $500 million renovation of the plant.
The renovation, which would prepare the plant for the next generation of GM small cars, has not been approved yet by top GM officials.
The Android project is expected to cost $3.9 million, with bank financing and company cash expected to pay for the rest. An estimated 185 jobs are expected to be created during the next three years.
State officials say GM asked the Michigan-based Android Industries to establish the 230,000-square-foot plant, controlling board records show.
Term: State records show terms of the loan to be at a fixed interest rate of 4 percent for no longer than 10 years. According to state records, the other parts of the financing package include a $1.98 million loan from Standard Federal Bank of Troy, Mich., and company equity of $392,500.
Android has four U.S. plants, state officials say. The average wage at the Trumbull County plant is expected to be $18.95 per hour including fringe benefits, according to state documents.
In another economic-development item, the board approved the release of $207,000 to Trumbull County to offset the cost of upgrading Ridge Road to handle truck traffic. The project is expected to cost more than $506,000 total.
The Federal Aviation Administration is pumping in $249,320 and Trumbull County is expected to pay $50,335 toward the project, according to state records.