A manufacturer wants a tax incentive agreement from the city as part of a $3.5 million expansion plan that would add 15 new jobs and retain 85 current positions at its Springfield facility over the next five years.
Pentaflex Inc., a metal stamping manufacturing plant located in the Prime Ohio business complex on Gateway Boulevard, is requesting that city commissioners approve a $21,000 employee incentive agreement at their meeting tonight. Per the agreement, the company would save $4,000 annually in income tax for the next five years.
The savings would help offset the investment Pentaflex will make by purchasing two new presses and allow it to add 15 more full-time jobs to the Springfield operation. In exchange, the company would guarantee a total workforce of at least 100 full-time employees locally by December 2019.
“It’s a dynamic plan for us; it’s a game-changer kind of strategy for us, and I think it’s going to do a lot for adding new business to our existing business,” said David Arndt, president and chief operating officer for Pentaflex.
The company will purchase two new Aida Servo presses, which will allow operators to change the stroke of the stamping press for more speed and proficiency when making a part. The new machines offer increased stamping speed, improved part accuracy and reduced tooling and raw material costs.
In the metal stamping industry, eight of every 10 presses sold today are Servo presses, which is why Arndt said the investment is necessary for Pentaflex to stay competitive in the contractor market.
The new presses will also allow Pentaflex to work with thinner gauge metals, which could expand its customer base from primarily heavy duty trucks to the automotive industry, company officials said.
Pentaflex is hiring now, Ardnt said but will make a big push to hire new employees for the new presses in May and October, when they will be delivered. The company will hire experienced press operators who will receive some on-the-job training with the new Servo machines. They will also hire tooling and maintenance support staff, which will require applicants have high technical skills and training prior to employment.
The tax agreement is being proposed to commissioners as an emergency ordinance, to allow the procurement of equipment and new hires as quickly as possible, according to the legislation.
Founded in 1972, Pentaflex manufactures stampings and welded assemblies used for heavy truck axle, brake, and exhaust system manufacturers. The company also supplies stampings to the automotive, agriculture, defense and industrial markets. The company manufactures its products in Springfield but maintains its sales and marketing operations in Flat Rock, Mich.
The company sells to customers globally, and Arndt said this investment will give Pentaflex a more competitive edge.
“We’re dedicated to the area. We know we want to stay competitive and maintain our business profile in the Springfield area, so this is something we felt we had to do,” he said.
Commissioners will vote on the deal today at 7 p.m. at city hall, 76 East High St., Springfield.
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