NILES HM Steel works out payroll issue
The company employs 14 people, with plans to hire 59 others over three years.
NILES -- A Hunter Avenue steel company expects to have payroll problems ironed out today.
Jim Mazzoni, plant manager of HM Steel, acknowledged this morning that the company didn't meet payroll last week.
"We had some accounts receivable that didn't come in," he said. "We had a cash flow problem, but we should have it straightened out today."
The steel processing mill company started operated in March 2001 and employs 14 people.
HM Steel bought the former Hunter Steel Co. on Hunter Avenue in February and renovated the building and equipment.
Tax abatement: Trumbull County and the city of Niles gave HM a 10-year, 75-percent property tax abatement and the Ohio Tax Credit Authority approved a 55-percent, 10-year tax credit for the company.
The company hopes to add 59 jobs over three years.
HM sells products to plants and warehouses that sell the products to other manufacturers.
HM's problems are similar to those felt by other companies during the recession of the last few months.
"A lot of people haven't bought anything since Sept. 11," Mazzoni said, referring to the terrorist attacks in New York City and Washington, D.C.
"When you have negativity like this, it doesn't help. We have a lot of orders in-house that we're trying to process."