JOB CREATION TAX CREDITS APPROVED FOR BUSINESS EXPANSION PROJECTS TO CREATE 242 JOBS FOR OHIOANS

FOR IMMEDIATE RELEASE
April 25, 2005

Columbus, OH -- Governor Bob Taft today announced that the Ohio Tax Credit Authority has approved Job Creation Tax Credits for eight companies involved in business location or expansion projects that if located in Ohio, are expected to create 242 jobs and retain 539 positions.

The Authority awarded tax credits to:

Kaivac, Inc., located in Hamilton (Butler County), has been awarded a 50 percent tax credit for a five-year term to expand its manufacturing operation. The value of the tax credit will be $32,735 over the term, and the company is required to maintain operations at the site for 10 years. Kaivac manufactures and assembles touch-free cleaning equipment that combines pressure washing, chemical injection, wet vacuuming and other tools used for more efficient cleaning of areas that include restrooms, floors, walls, stairwells, kitchens and hallways. The company’s customer base includes restaurants, schools and large institutional users. Kaivac plans to acquire a neighboring facility, which will provide 30,000 square feet of additional space to accommodate the company’s increased equipment production needs. The $510,000 project is expected to retain 29 positions and create 25 jobs within the first three years of the projects initial operation.

CAN-Cleveland, LLC, located in Cleveland (Cuyahoga County), has been awarded a 50 percent tax credit for a five-year term to expand its manufacturing operation. The value of the tax credit will be $29,701 over the term, and the company is required to maintain operations at the site for 10 years. American Container Net, Inc. (ACNI) provides environmentally responsible processing of used, empty containers for the packaging industry. The company reconditions or remanufactures primarily 55-gallon steel and plastic drums and intermediate bulk containers that are then used as shipping containers for a variety of commercial products, including food products, lubricants and petroleum products, paint and coatings, chemicals and pharmaceuticals. ACNI plans to acquire and expand an existing 35,000 square-foot facility where it plans to make a fixed asset investment of at least $2.4 million. Ohio is in competition with Pennsylvania for this project that would retain 32 positions and create 25 jobs within the first three years of the projects initial operation. Other state assistance committed to the project includes a $10,000 Ohio Investment in Training Program grant.

Smart Papers, LLC, located in Hamilton (Butler County), has been awarded a 55 percent tax credit for a five-year term to expand its headquarters operation. The value of the tax credit will be $112,211 over the term, and the company would be required to maintain operations at the site for 10 years. Smart Papers produces premium specialty papers that are used in high-end applications such as annual reports, labels and ticket stock. The company recently purchased Fraser Papers’ Midwest operations, more than doubling the size of its business. Smart Papers proposes to consolidate its administrative and professional offices into a single headquarters facility. Ohio was in competition with Illinois, Wisconsin and Indiana for this $550,000 project, which is expected to retain 48 positions and create 15 jobs within the first three years of the projects initial operation.

YUSA Corporation, located in Washington Court House (Fayette County), has been awarded a 55 percent Job Creation Tax Credit for a seven-year term to establish a research and development operation at its current manufacturing facility. The value of the tax credit will be $233,940 over the term, and the company would be required to maintain operations at the site for 14 years. YUSA manufactures rubber products for the automotive industry and plans to construct a 20,000 square-foot research and development center where it will develop parts from the design stage to preparing parts for mass production. Ohio was in competition with Japan for this $7.9 million project, which is expected to create 35 jobs within the first three years of the projects initial operation. Other state assistance committed to this project includes a $2.3 million Research and Development loan, a $75,000 Roadwork Development grant, a $35,000 Business Development grant and a $35,000 Ohio Investment in Training Program grant.

Presrite Corporation, located in Jefferson (Ashtabula County), has been awarded a 55 percent tax credit for a seven-year term to expand its manufacturing operation. The value of the tax credit will be $130,332 over the term, and the company is required to maintain operations at the site for 14 years. Presrite is one of the nations largest, privately owned steel forging companies and produces high quality parts. One of which is the specialized forged tooth gear, which allows the customer to obtain a longer tooling life and a lower tooling cost. The products are used in the motor vehicle, aerospace, railroad, agriculture, mining and material handling industries. The company plans to invest in new technologies and processes to remain competitive in the steel forging industry. The more than $4.8 million project is expected to retain 76 positions and create 30 jobs within the first three years of the projects initial operation.

Alliant Foodservice, Inc., dba U.S. Foodservice, located in Twinsburg Township (Summit County), has been awarded a 55 percent tax credit for a seven-year term to expand its distribution operation. The value of the tax credit will be $102,596 over the term, and the company is required to maintain operations at the site for 14 years. U.S. Foodservice is the second largest food service distributor in the nation providing more than 43,000 national, private label and signature brand items to restaurants, health care facilities, hotels, cafeterias, schools and colleges. The company proposes to expand its existing 147,000 square-foot facility by 30,861 square feet and purchase machinery and equipment to accommodate its growth. Ohio is in competition with Pennsylvania for this $5.75 million project, which is expected to retain 238 positions and create 25 jobs within the first three years of the projects initial operation. Other state assistance committed for this project includes a $15,000 Ohio Investment in Training Program grant.

Amano Cincinnati, Inc., located in Loveland (Hamilton County), has been awarded a 60 percent tax credit for a seven-year term to expand its manufacturing operation. The value of the tax credit will be $237,573 over the term, and the company would be required to maintain operations at the site for 14 years. In Loveland, Amano manufactures and assembles parking equipment that includes pay stations, ticket dispensers, gates and fee computers. The company has a second manufacturing facility located in Anaheim, California, which produces time clocks and time and attendance software. The company proposes to purchase adjacent land where it would construct a 37,781 square-foot addition to its current building and purchase machinery and equipment. Ohio is in competition with California for this more than $2.2 million project, which is expected to retain 51 positions and create 57 jobs within the first three years of the projects initial operation.

Interbrand Hulefeld, Inc. dba Interbrand, located in Cincinnati (Hamilton County), has been awarded a 65 percent tax credit for a five-year term to expand operations. The value of the tax credit will be $237,024 over the term, and the company would be required to maintain operations at the site for 10 years. Interbrand specializes in package design and graphic arts. The company is one of the world’s leading brand strategy and design consultant. The Cincinnati operation serves as one of the Midwest’s premiere design groups with clients that include IBM, Procter & Gamble, The Kroger Company, Kellogg, BMW, Gillette, Pepsi and Expedia.com. Interbrand proposes to relocate to a larger site where it plans to lease approximately 22,000 square feet of space. Ohio is in competition with Kentucky for this $500,000 project, which is expected to retain 65 positions and create 30 jobs within the first three years of the projects initial operation. Other state assistance committed to this project includes a $30,000 Ohio Investment in Training Program grant.

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. Some of the additional state assistance is contingent upon the approval of the State Controlling Board.