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Projects Expected to Generate Investments to Ohio’s Economy

COLUMBUS – Lieutenant Governor Lee Fisher today announced that the Ohio Tax Credit Authority has approved Job Creation Tax Credits and a Job Retention Tax Credit for 11 businesses involved in location or expansion projects that, if located in Ohio, are expected to create 1,230 jobs, and retain 3,050 positions for Ohioans.

GammaStar Medical Systems, Ltd, a subsidiary of GammaStar Medical Group, Ltd, to be located in Beachwood (Cuyahoga County), has been awarded a 35 percent credit for a six-year term to establish a new facility. The value of the tax credit is estimated at $189,838 over the term, and the company would be required to maintain operations at the project site for 12 years. GammaStar was founded in 2004 in Shanghai, China. The company's founder has been involved in the development of cancer treatment products for more than 15 years and holds 90 patents. Since its inception, the company has opened several offices throughout Asia, and is now focusing on its North American headquarters. GammaStar's primary product is called the Gyro Knife, which provides stereotactic radiosurgery and radiation therapy capabilities to the head and body. The technology provides a maximum radiation dose to a tumor while minimizing contact to healthy tissue.

FlightSafety International (FSI), located in Columbus (Franklin County), has been awarded a 75 percent credit for a 15-year term to expand its Columbus operations. The value of the tax credit is estimated at approximately $2.4 million over the term, and the company would be required to maintain operations at the project site for 30 years. FSI was established in 1951 and is a wholly owned subsidiary of Berkshire Hathaway Inc. The company is the worldwide leader in training aviation professionals, with 43 training locations and more than 230 flight simulators. FSI's primary focus is the training of aviation professionals for proficiency in the safe and effective operation of all types of aircraft. FSI also designs and publishes simulation software and provides its own simulators, including the type-specific, full-flight simulators that realistically recreate flight down to the smallest details. More than 13,000 graduates fly for 62 airlines and more than 100 corporate flight departments. The company proposes to purchase new machinery and equipment and construct a new 100,000 square-foot facility next to the NetJets headquarters.

Myers-Controlled Power, LLC, to be located in North Canton (Stark County), has been awarded a 45 percent credit for a five-year term to establish a new facility. The value of the tax credit is estimated at $152,125 over the term, and the company would be required to maintain operations at the project site for ten years. Controlled Power is a privately owned manufacturer of complete power systems that designs and manufactures its own lines of both AC and DC circuit breakers and a wide range of AC and DC switchgear, including power control center switchgear. The company offers engineering expertise, systems manufacturing capabilities, comprehensive service and support. The company helps customers operate more efficiently and cost effectively, increasing overall safety and productivity. The company proposes to purchase machinery and equipment and lease an existing building to increase operating capacity. The 147,000 square-foot facility will be used to design and manufacture the company’s lines of AC and DC circuit breakers. Ohio is in competition with Pennsylvania and Texas for this more than $1.1 million project, which is expected to create 60 positions and retain 124 jobs within the first three years of the project’s initial operations.

Friction Products Company, located in Medina (Medina County), has been awarded a 40 percent credit for a seven-year term to expand its facility. The value of the tax credit is estimated at $214,217 over the term, and the company would be required to maintain operations at the project site for 14 years. Friction was founded in 1961 as a manufacturer of metallic brake pads for commercial aircraft. Friction is a wholly-owned subsidiary of Wellman Products Group, Inc. Holding Company, which is in turn a wholly-owned subsidiary of Hawk Corporation. The company's primary product line is brake and clutch friction materials for industrial equipment, including construction and mining, aircraft, agriculture, heavy truck, and performance automotive applications. The company is primarily an original equipment supplier to companies such as Caterpillar, Deere, Eaton, Goodrich, and Meggit Aircraft Systems. The company proposes to purchase new machinery and equipment and lease an existing 97,000 square-foot building adjacent to its current facility that will be used to fulfill the company’s expected volume growth in fuel cell manufacturing activity, as well as the growth in Hawk's friction materials business. Ohio is in competition with Oklahoma for this more than $12.6 million project, which is expected to create 95 positions and retain 250 jobs within the first three years of the project’s initial operations.

Menlo Worldwide Logistics, Inc, to be located in Bath Township (Allen County), has been awarded a 35 percent credit for a five-year term to establish a new facility. The value of the tax credit is estimated at $48,517 over the term, and the company would be required to maintain operations at the project site for ten years. Menlo is a third-party logistics provider that manages its customers’ supply chains by providing various transportation-related services, such as warehousing and distribution, transportation management, and logistics consulting. Con-way Inc. founded Menlo in 1990 to fill a gap in the marketplace. Today, Menlo is a $1.3 billion global company headquartered in San Mateo, California, with approximately 4,500 employees. The company proposes to support a leading heavy equipment manufacturer that is experiencing accelerated growth and has requested assistance from a third party logistics provider to expand its warehouse operations. Menlo will provide a 250,000 to 400,000 square-foot leased climate-controlled warehouse, with all racking and materials handling equipment to service this major contract. Menlo will staff this warehouse and manage all facets of the warehouse activity, including product receiving, inventory management, sub-assembly, repair, and outbound shipping. This project is expected to create 35 positions within three years of the project’s initial operations.

The Motorists Insurance Group, headquartered in Columbus (Franklin County), has been awarded a 45 percent credit for a six-year term to expand its workforce. Motorists has approximately 700 Ohio employees. The value of the tax credit is estimated at $167,951 over the term and the company would be required to maintain employment at the site for 12 years. The Motorists Insurance Group consists of eight property and casualty insurance, life insurance and insurance brokerage companies with assets of more than $1 billion. Motorists Mutual established in 1928 is the lead company of the group and is represented by almost 4,000 independent agents. The company proposes to expand its presence in its current facility to allow for growth and establish additional workspaces for the new employees. Motorists is expected to create 40 positions and retain 611 jobs in the next three years of operation.

NetJets, Inc., located in Columbus (Franklin County), has been awarded a 75 percent credit for a 15-year term to expand its headquarters operations. The value of the tax credit is estimated at approximately $24 million over the term, and the company would be required to maintain operations at the project site for 30 years. Founded in 1964, NetJets is the world’s leader in private aviation. NetJets created the concept of fractional jet ownership, giving individuals and businesses all the benefits of whole aircraft ownership at a fraction of the cost.

PCMS Datafit, Inc., located in Springdale (Hamilton County), has been awarded a 50 percent credit for a five-year term to expand its facility. The value of the tax credit is estimated at $508,469 over the term, and the company would be required to maintain operations at the project site for ten years. PCMS is part of PCMS Holding Plc, a privately held company, in the United Kingdom. The company was established in 1982 and in 1999 entered the U.S. by acquiring 3X Corporation. PCMS operates its North American headquarters in Springdale and the company's Store Systems Group offers the Vision Portfolio suite of JAVA-based retail solutions software modules.

Olympic Steel, Inc., to be located in Dover (Tuscarawas County), has been awarded a 40 percent credit for a seven-year term to establish a new facility. The value of the tax credit is estimated at $47,432 over the term, and the company would be required to maintain operations at the project site for 14 years. Olympic Steel began operations in 1954 and its business focus is primarily hot and cold rolled sheet.

Miba Sinter USA, LLC, to be located in Morgan Township (Morgan County), has been awarded a 50 percent credit for a seven-year term to establish a new facility. The value of the tax credit is estimated at $175,593 over the term, and the company would be required to maintain operations at the project site for 14 years. Miba AG was founded in Laakirchen, Austria, as a mechanic's shop in 1927. Miba AG has grown into a global strategic supplier of components in the automotive, truck, marine, locomotive, compressor, and industrial equipment markets. Miba AG's three primary product groups provide bearings, sintered metal components, and friction products to customers worldwide. Miba AG is the parent of all subsidiaries and provides management, financial, administrative, and information technology support for all three product groups.

Bridgestone Firestone North American Tire, LLC; Bridgestone Americas Holdings, Inc.; Bridgestone Firestone Research, LLC; Firestone Polymers, LLC; Firestone Natural Rubber Co., LLC, located in Akron (Summit County), has been awarded a 75 percent Job Retention Tax Credit for a 15-year term for the retention of 1,000 positions resulting from the company’s Technical Center and Tire Testing laboratory retention project. The value of the tax credit is estimated at approximately $18 million over the term, and the company would be required to maintain operations at the project site for 18 years. Bridgestone Firestone North American Tire, a subsidiary of Bridgestone Americas Holding, Inc., traces its roots to The Firestone Tire & Rubber Company, which was founded in Akron in 1900.

The Job Creation Tax Credit is a refundable tax credit against the business corporate franchise or income tax. The credit equals a percentage of new state income tax withheld on new, full-time employees in Ohio. The Job Retention Tax Credit provides corporate franchise or state income tax credit for businesses that commit to retain a significant number of full-time jobs.