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New York to give USD 9 million in aid to Crucible Industries
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Monday, 14 Dec 2009
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It is reported that New York will lend or give Crucible Industries LLC a USD 9.49 million or about USD 74,000 per job to reopen the Geddes steel mill.

In return for its investment, the state expects the mill to employ up to 170 workers and to have an impact of USD 80.5 million on the local economy in the next seven years. The figures are contained in a report about the USD 24.6 million project filed in October by the state at the Onondaga County clerk’s office. The mill, which produces steel used to make automotive valves and machine tools, planned to hire 120 workers by the end of the year.

Mr James Beckman president of Crucible Industries said that Crucible already employs 200. The Geddes plant resumed operations last month after a long shutdown due to bankruptcy.

Mr Jack Jankovic head of the private investment group JP Industries Inc formed Crucible Industries to buy the mill from the bankrupt Crucible Materials Corporation in October. The new company paid USD 8 million for the mill on State Fair Boulevard.

The total cost of the project is USD 24.6 million, including buying the plant, working capital and other costs. New York has promised a USD 2,670,000 loan from the Upstate Regional Blueprint Fund and two loans of USD 2,660,000 each from the Assembly and state Senate from a source that’s yet to be decided.

That money will be used to buy the 1.2 million square foot plant. In addition, the company will receive a USD 1.5 million grant from Empire State Development to help with energy costs over three years. The state’s total investment is USD 9.49 million.

For its investment, New York expects each Crucible job to create or keep 1.6 jobs elsewhere as the company and its employees buy goods and services in the community. The employment number comes form the US Bureau of Economic Analysis, said Laura Magee, speaking for Empire State Development.

(Sourced from www.syracuse.com)

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