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A Vallourec Star subsidiary is considering an $81.5 million investment in Youngstown

Published: Tue, January 14, 2014 @ 12:00 a.m.

Project would add 84 jobs, up to $3.7 million in payroll


VAM USA LLC is considering building an $81.5 million finishing mill in Youngstown’s Ohio Works Business Park at the former Genmak facility and an additional 67,500 square feet nearby.

By David Skolnick



A Vallourec Star subsidiary is in the final stages of deciding if it will invest $81.5 million for the construction of a steel-pipe threading facility at the former Genmak Steel building and an additional 67,500 square feet nearby in the city’s Ohio Works Business Park.

Vallourec’s answer on using the Youngstown property for its VAM USA LLC subsidiary is expected in less than 90 days, said city Finance Director David Bozanich.

The facility would employ 84 full-time workers by early next year, according to VAM’s 10-year, 75-percent real- property tax abatement application. It listed an estimated annual payroll of $2.9 million on one part of the application and $3.7 million on another.

“We’ve been working with the company for an extended period of time,” Bozanich said. “We committed to a tax abatement as part of the deal in advance of their decision. We’re extremely pleased to be in the running for this project.”

Mayor John A. McNally said, “It would be fantastic news if this happens. We want to let them know we want them to make a decision to come here. It’s a substantial investment and substantial job creation. The folks at Vallourec and VAM have been great to work with.”

The proposed facility likely would have two threading lines, and would take about 16 months to complete from the start of construction, according to VAM’s tax-abatement application.

VAM estimates the cost of the potential Youngstown facility at $81.5 million, but gave a project investment range of $73.9 million to $95 million on the abatement documentation.

City council will consider legislation Wednesday authorizing the board of control to offer the tax abatement to VAM.

The abatement would save $6 million over 10 years for VAM with the company paying $2 million in property taxes during that time frame. Also, VAM anticipates its employees will pay $79,750 annually in city income tax.

A local company spokesman said late Monday that he asked Vallourec officials for a comment but had not heard back from them.

VAM’s website said the company “is a leader for ‘super premium’ connections for difficult applications such as very deep wells, including threaded and coupled tubing and carbon or stainless steal casing.”

Vallourec manufactures steel tubes for the oil and gas industry.

Vallourec bought the 70,000-square-foot former Genmak Steel facility at 1053 Ohio Works Drive and two vacant adjacent parcels, which are about 67,500 square feet, in September for $2.5 million. Work is being done at the vacant land to clear it.

The Genmak structure was built in 2003 for the leveling and cutting of steel coil and storage, and has been empty for a few years.

The Ohio Works location is about a mile away from Vallourec Star’s facilities in the Brier Hill Business Park, which includes the company’s $1.1 billion expansion plant that opened in October 2012 through a cooperative revenue-sharing deal between Youngstown and Girard.

Vallourec announced in November 2011 that it would invest $57 million in a VAM USA LLC pipe-thread facility at the former Indalex plant site in Girard. That facility was never built, and it appears Vallourec has decided to consider the Youngstown site instead.

Girard Mayor James Melfi said he was surprised to learn from a reporter that VAM is looking at Youngstown.


1Askmeificare(803 comments)posted 1 year, 8 months ago

"Girard Mayor James Melfi said he was surprised to learn from a reporter that VAM is looking at Youngstown."

Why... How... I don't get it?!

Melfi is Mayor and shouldn't he be on top of industry and news and information and rumor and gossip and inuendo and on and on in his town?

Shouldn't he expect the expected and unexpected? -In this case competition from The City of Youngstown?

Any businessman knows you HAVE TO BE ON 'IT' or you lose the 'game'. Why should politics be any different?

What does it matter anyway Mayor Melfi? Girard can't even come close to offering what The City of Youngstown can offer in anything and everything.

Great article and I thank and congratulate everyone in their progress on this beautiful development.

Anyone in manufacturing absolutely must consider The City of Youngstown as we have amazing resources that cannot be found elsewhere. Our labor force is ready and skilled and anxious to work.

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2BigJim2234(57 comments)posted 1 year, 8 months ago

Sure glad the City had the vision to bring North Star here 30 years ago!! while using free land and taxes. Most naysayers and politicians thought they would be gone in 9 years 11 months before their 10 year tax break...The people of Mahoning County should be glad they were wrong!

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3papa1(711 comments)posted 1 year, 8 months ago

askmelficare, most of your job applicants can't pass a drug test.

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4glbtactivist(295 comments)posted 1 year, 8 months ago

Here go those cheap creeps again. Foreigners moving into the area to take all the profits from making pipes for the fracking industry. That industry will only last about 15 years. Then the company will leave without ever paying their fair share of taxes to pay for police, fire, roads, etc. Screwing the local citizens again. Leave a contaminated mess.

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5dd933(295 comments)posted 1 year, 8 months ago

The "pipe-thread" plant was also proposed for a site next to the former Dempsey Steel building nearer to the new main plant - on Youngstown property. VAM found a site it liked. It's a pity that when something good finally happens to our valley's economic development our valley's daily newspaper reacts only with scorn and bias. Why does the Vindicator always frame things against the city? Why does the Vindicator always try to promote animosity between local governments?
Remember, Mayor Williams went to Paris - not Mayor Melfi

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6dontbeafool(1564 comments)posted 1 year, 8 months ago

@papa, are you talking about people from Girard not being able to pass a drug test, or people in this area in general?

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7IslandMike(764 comments)posted 1 year, 8 months ago

The improved economy and rising stock market is all Obama's fault. Could you imagine how the Neo-Cons and their buddies at the Fixed Noise Channel would be taking credit for the successes of Wall Street this past year? That is all we would ever hear about!

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8biggee(43 comments)posted 1 year, 8 months ago

So if Bob "I'm fighting for you" Hagan had his way there would be no V&M cause there would be no fracking. And as far as them only staying 15 years and leaving really? They have already spent a billion dollars on the north side of Youngstown, they are paying comparable wages to the General Motors plant . Ask any skilled tradesman or laborer if they should expand. Better yet wait for Tim Ryan and Bob hagan bring home some jobs...some crack me up!

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9southsidedave(5126 comments)posted 1 year, 8 months ago

I do not understand how so many people can go through life having a negative attitude about everything....be happy the company wants to invest in the area, and create jobs. Peace.

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10JoeFromHubbard(1476 comments)posted 1 year, 8 months ago

@ southsidedave:

You're right on the spot on these posts.

It didn't take long for them to blow up
and go far off track.

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11paulydel(1487 comments)posted 1 year, 8 months ago

There are some really stupid comments by some really stupid people about this story. You should be thankful that the companies coming in are reviving to an extent the steel industry. I am no fan of foreign companies coming in and doing this because the dollar profits end up overseas. Our system of doing business in this country is bass ackwards but at least this is bringing jobs to the area. Be thankful they didn't go somewhere else.

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