DEVELOPMENT FINANCING ADVISORY COUNCIL APPROVES THREE ECONOMIC DEVELOPMENT PROJECTS TO CREATE 203 JOBS IN OHIO

FOR IMMEDIATE RELEASE
February 23, 2004

Columbus, OH -- Governor Bob Taft today announced that the Development Financing Advisory Council (DFAC) has approved loans totaling $4.4 million for four economic development projects. The loans, which are pending State Controlling Board approval, are expected to create 203 jobs and retain and/or maintain 1,166 positions.

State Industrial Products Corporation, located in Cleveland (Cuyahoga County), will receive a $700,000 loan at an interest rate of three percent for a seven-year term to expand operations. The company is a leading manufacturer and distributor of specialty chemical products for the cleaning and maintenance markets. State Industrial Products plans to modernize and expand its sales and distribution operation by adding personnel and equipment. Ohio was in competition with Oklahoma, Georgia and Arizona for this more than $1.5 million project, which is expected to create 26 jobs within the first three years of the projects operation and retain 261 positions. Also today, the Ohio Tax Credit Authority approved a 55 percent tax credit for an eight-year term for State Industrial Products Corporation for this expansion project. The value of the tax credit will be $122,430 over the term and the company is required to maintain operations at the site for 16 years.

International Paper Company, located in Miami Township (Clermont County), will receive a $1.5 million direct loan at an interest rate of three percent for a 15-year term. IPC is the world’s largest paper and forest product company and is a major supplier of printing and writing papers, paperboard, packaging products and wood products. The company plans to expand its Cincinnati Technology Center research and development operations. Ohio was in competition with New York for this $2.5 million project that will create 70 jobs within the first three years of the project’s initial operation and will maintain 732 positions.

J&M Precision Machining, Inc., located in Blanchester (Clinton County), will receive a $1 million direct loan at an interest rate of three percent for a 10-year term. The funds will be used to construct and renovate a facility and to purchase machinery and equipment. J&M Precision Machining is a manufacturer of automobile parts and has been awarded a significant package of 10 parts to be machined and then provided to major automakers. This $8.6 million project is expected to create 25 jobs within the first three years of operation and retain five positions.

Lester PDC, Ltd., located in Bedford Heights (Cuyahoga County), will receive a $1.2 million direct loan at an interest rate of three percent for a 10-year term. The funds will be used to purchase two operations, including property and assets, from Metaldyne, Inc. Lester PDC is an automotive precision aluminum die-castings operation. This $2.4 million project is expected to create 82 jobs within the first three years of operation and retain 168 positions.

The Direct Loan program provides loans for land and building acquisition, expansion or renovation, and equipment purchase.