DEVELOPMENT FINANCING ADVISORY COUNCIL APPROVES ECONOMIC DEVELOPMENT PROJECTS TO CREATE 253 JOBS IN OHIO

FOR IMMEDIATE RELEASE
April 25, 2005

Columbus, OH -- Governor Bob Taft today announced that the Development Financing Advisory Council (DFAC) has approved loans totaling more than $8.7 million for six economic development projects. The loans, which are pending State Controlling Board approval, are expected to create 253 jobs and retain 1,463 positions.

Micro Industries Corporation, located in Orange Township (Delaware County), will receive a $2.175 million Research and Development Loan at an interest rate of two percent for a seven-year term to purchase machinery and equipment. The company manufactures computer hardware components and plans to purchase the tools necessary to develop a lead-free manufacturing process in response to the European Union’s directive called Restricted Use of Hazardous Substances (RUHS). RUHS requires that all products with electrical components eliminate or reduce hazardous substances such as lead and mercury to acceptable levels. This more than $5.1 million project is expected to create 18 jobs and retain 68 positions within the first three years of the projects initial operation.

Republic Engineered Products, Inc., located in Canton (Stark County), will receive a $2 million Direct Loan at an interest rate of three percent over a five-year term to purchase a new bloom and billet caster. The company produces and markets steel products used in the automotive and industrial equipment industries. The new equipment will be housed in an existing building and will provide the company with the latest in casting technology to produce blooms and billets for the firm’s rolling mills and customers. This more than $46.2 million project is expected to create 170 jobs and retain 538 positions within the first three years of the projects initial operation.

Ashtabula City Port Authority, located in Ashtabula (Ashtabula County), will receive a $375,000 Rural Development Initiative Fund grant and a $375,000 Rural Industrial Park Loan at an interest rate of three percent over a 15-year term to develop a new industrial park and provide development-ready plots of land in the community. The Authority is responsible for overseeing the Ashtabula River and its docks, in addition to spearheading industrial development. The Authority plans to purchase 42 acres at East 6th Street and State Route 11 for the new industrial park, which will consist of 10,000 to 50,000 square-foot facilities. This more than $1.3 million project will have the necessary infrastructure to prepare the site for future development.

Seneca Industrial & Economic Development Corporation (SIEDC), located in Tiffin (Seneca County), will receive a $401,000 Rural Development Initiative Fund grant and a $401,000 Rural Industrial Park Loan at an interest rate of 3.25 percent over a 15-year term to construct a new facility in the Eagle Rock Industrial Park. The SIEDC was established in 1984 as a private, non-profit corporation organized for the purpose of encouraging economic and community development in Tiffin. The SIEDC plans to construct a 41,000 square-foot speculative building on 5.5 acres on the northeast corner of the intersection of Township Road 118 and County Road 11. This more than $1 million project will allow the SIEDC to improve marketing of the park to potential end users.

Presrite Corporation, located in Jefferson Ashtabula County), will receive a $750,000 Direct Loan at an interest rate of three percent over a seven-year term to purchase machinery and equipment. 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 equipment and new technologies and processes to remain competitive in the steel forging industry. The more than $4.8 million project is expected to create 30 jobs and retain 76 positions within the first three years of the projects initial operation.

YUSA Corporation, located in Union Township (Fayette County), will receive a $2.3 million Research and Development Loan at an interest rate of two percent over a 15-year term to acquire land, construct a research and development center and to purchase machinery and equipment. 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. This $4.7 million project is expected to create 35 jobs and retain 781 positions within the first three years of the projects initial operation.

The 166 Direct Loan program provides loans for land and building acquisition, expansion or renovation, and equipment purchase. The Research and Development Investment Fund Loan (R&D) targets large investments from companies with significant assets and sales, and assists in financing the acquisition, construction and related costs of technology, facilities and equipment. The Rural Industrial Park Loan program provides loans to rural, distressed local communities and other eligible applicants for real estate and infrastructure investments to develop well-planned industrial parks. The Rural Development Initiative Fund provides grants to eligible applicants who also qualify and receive funding under the Rural Industrial Park Loan program.