NILES Sharon Tube awaits word on abatement
If approved, construction will begin this month and the facility will become operational next year.
THE VINDICATOR, YOUNGSTOWN
NILES -- City council has approved a 75-percent tax abatement for expansion of Sharon Tube Co.'s Niles Division on Hunter Street.
Council took the action Wednesday that, if approved by Trumbull County commissioners, will allow the company to construct a $10.5 million building and equip it.
Commissioners will vote on the issue Wednesday.
David Krozier, company chief financial officer and secretary, said a new weld mill will allow the company to produce an additional size of mechanical tubing. Currently, the company imports the specific size from Canada and resells it.
"We're very excited about it," Krozier said. If commissioners approve the abatement, construction should begin this month and the plant will be operational by March.
More would be hired
The 10-year, 75-percent abatement on both real and personal property calls for the hiring of 10 full-time workers in three to five years.
Sharon Tube has 35 employees at its Niles facility. Krozier said employees earn $19.50 per hour, not including benefits.
The company employs about 400 in Sharon but also has small plants in Wheatland, Brookfield and Hubbard.
Krozier said the expansion will result in the company paying an additional $25,000 in tax money.
"It will be a net increase for the city and for the school system," Krozier said.
The company gave a $4,650 donation to the school district for a new projection unit to be used at the middle school under construction.
Terry Swauger, school board president, said the units, which enable a teacher to deliver computer power point presentations.
The equipment enables a teacher to make changes or additions to a presentation while it's being delivered. The changes are then saved to the system.
"At this point, it's really state of the art," Swauger said.
Sharon Tube received an abatement in 1998 for a $6.8 million expansion of a new furnace and building. That expansion produced six new jobs.