OHIO TAX CREDIT AUTHORITY APPPROVES TAX CREDITS FOR BUSINESS EXPANSION PROJECTS TO CREATE 1,116 JOBS FOR OHIOANS

FOR IMMEDIATE RELEASE
February 23, 2004

Columbus, OH -- Governor Bob Taft today announced that the Ohio Tax Credit Authority has approved Job Creation Tax Credits for Ohio companies involved in business location or expansion projects. These projects are expected to create 1,116 jobs and retain and/or maintain 3,055 positions.

The Authority awarded tax credits to:

Union Corrugating Company, located in Piqua (Miami County), has been awarded a 55 percent tax credit for a five-year term to begin operations. The value of the tax credit will be $67,524 over the term and the company is required to maintain operations at the site for 10 years. The company is a manufacturer and distributor of metal roofing products for a variety of residential and commercial applications. Union Corrugating Company is headquartered in North Carolina and plans to expand its operations into the Midwest and Upper Midwest. The Piqua operation will be used for manufacturing, distribution and sales of the company’s full line of products. Ohio was in competition with Indiana for this $511,620 project, which is expected to create 34 jobs within the first three years of operation.

D.M. Fields, LLC dba D.M. Foods, to be located in Avon (Lorain County), will receive a 55 percent tax credit for a seven-year term to begin operations. The value of the tax credit will be $134,547 over the term and the company is required to maintain operations at the site for 14 years. The company plans to build a new, food manufacturing operation where it will mix, package and distribute sauces, gravies and powdered foods for the catering and retail restaurant industry. D.M. Foods will construct a 22,500 square-foot building and purchase machinery and equipment. The $5.38 million project is expected to create 40 jobs within the first three years of the project’s initial operation.

State Industrial Products Corporation, located in Cleveland (Cuyahoga County), will receive a 55 percent tax credit for an eight-year term to expand operations. 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. State Industrial Products is a leading manufacturer and distributor of specialty chemical products for the cleaning and maintenance markets. The company’s product line has grown to include a number of items including air fresheners, drain care items, cleaners, lubricants and grounds care products. State Industrial Products plans to 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.

C. International, Inc., to be located in Groveport (Franklin County), will receive a variable tax credit for a 10-year term to expand operations. The rate provided will be 75 percent for years one through five and 70 percent for years six through 10. The value of the tax credit will be $733,337 over the term, and the company will be required to maintain operations at the site for 20 years. C. International, a wholly owned subsidiary of Cardinal Health, is a wholesale drug distributor serving retail chains, hospitals and pharmacies nationwide. C. International plans to develop a new concept in its distribution network by establishing a main distribution center for the company that will distribute to 26 other company centers nationwide. Ohio was in competition with Kentucky for this $25.4 million project, which is expected to create 133 jobs within the first three years of the products initial operation and retain 53 positions.

Lima Energy Company, to be located in Lima (Allen County), will receive a 65 percent tax credit for a 10-year term to expand operations. The value of the tax credit will be more than $1.1 million over the term, and the company is required to maintain operations in Ohio for 20 years. Lima Energy Company, a wholly owned subsidiary of Global Energy, Inc., will construct its facility on a 63-acre, former brownfield site and will use state-of-the-art technology to generate approximately 540 MW of electric power per day. The plant will utilize approximately 5,000 tons of solid fuel, including approximately 3,000 tons of Ohio coal per day. The primary product will be electric power for commercial sale on the wholesale market. The $565.3 million project is expected to create 104 jobs within the first three years of operation.

F.T. Precision, Inc. (FTP), located in Wayne Township (Knox County), has been awarded a 55 percent tax credit for a six-year term to expand operations. The value of the tax credit will be $100,130 over the term, and the company is required to maintain operations at the site for 12 years. FTP is a joint venture between American Honda Motor Company, Inc. and Tanaka Seimitsu Kogyo Company, Ltd., who have been working together since 1985 to develop a rocker arm system for Honda’s six-cylinder automobile engines. The proposed project is contingent upon Honda awarding a production contract for a new design of rocker arm parts to FTP at which time, the company plans to expand its current facility by 50,000 square feet to manufacture the new product. The $22.1 million project is expected to create 65 jobs within the first three years of operation and retain 172 positions.

LabAlliance, Inc., located in Cincinnati (Hamilton County), will receive 75 percent tax credit for a 10-year term to expand its medical laboratory testing operation. The value of the tax credit will be $4.1 million over the term, and the company is required to maintain operations at the site for 16 years. Lab One, Inc. provides laboratory and related information services to various users, including: risk assessment information services to life insurance companies; diagnostic laboratory healthcare services to HMOs, health insurance providers, and physicians and patients; and drug testing services and related products to employers. Ohio is in competition with Kentucky for this $18.4 million project that is expected to create 500 jobs within the first three years of the project’s initial operation and retain 562 positions.

R.R. Donnelley, located in Willard (Huron County), has been awarded a 55 percent tax credit for a nine-year term to expand operations. The value of the tax credit will be $296,422 over the term, and the company is required to maintain operations at the site for 18 years. R.R. Donnelley is a leading distributor of catalogs, magazines, books and direct mail in the U.S. The company prints magazines such as TV Guide and Sports Illustrated. They also print catalogs, retail inserts, phone directories, and financial publications. The company plans to invest in new machinery and equipment and will establish a centralized Digital Solutions Center to convert client files into usable printed formats. Ohio is in competition with Indiana and Virginia for this more than $5 million project, which is expected to create 30 jobs within the first three years of operation and retain 1,338 positions.

Lear Corporation Automotive Systems, located in Wauseon (Fulton County), will receive a 65 percent tax credit for an eight-year term to expand its manufacturing operation. The value of the tax credit will be $554,322 over the term, and the company is required to maintain operations at the site for 16 years. Lear Corporation is the world’s largest automotive interior systems supplier and serves all of the world’s major automakers with parts that are found in more than 300 vehicles. The company plans to expand its 283,000 square-foot manufacturing facility and introduce products that include interior door panels for General Motors GMT 900 Truck Series and General Motors GMX 222/272 LeSabre and Deville Automobiles. The $29.3 million project is expected to create 184 jobs within the first three years of the project’s initial operations and retain 669 positions.

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.