COLUMBUS, Ohio - The Ohio Tax Credit Authority on Monday approved a seven-year job creation tax credit for Youngstown manufacturer Vallourec Star, LP, a move expected to result in 40 new full-time positions.

The credit, valued at 1.126 percent of new payroll, supports Vallourec Star's plan to expand its current operations to manufacture a new line of high-quality steel pipe. The new positions are projected to generate more than $2.3 million in new annual payroll for the Mahoning Valley region.

Ohio Department of Development Director Lydia Mihalik announced the approval today as part of a package of 12 projects across the state. In total, the projects reviewed by the Tax Credit Authority and regional partner JobsOhio are expected to create 1,126 new jobs, retain 2,686 existing jobs, and result in more than $2 billion in total investment statewide.

The Youngstown-Warren Regional Chamber (YWRC) sent the following statement on this expansion.

"Vallourec’s proposed expansion reflects continued confidence in the Valley’s workforce and business environment. This investment would strengthen our industrial foundation and grow the local supply chain at companies like Brilex Industries and City Machine Technologies. This also would further solidify the Valley as the supply chain capital of the Utica Shale."

Vallourec Star supplies the Oil Country Tubular Goods market globally from its Youngstown base, which has a long history in steel production. The manufacturer’s facility in the city’s Brier Hill neighborhood utilizes an electric arc furnace for steelmaking, pipe rolling, heat treatment, and specialized threading processes. 

The expansion is intended to meet increased demand from the North American market.

The Tax Credit Authority's decision to grant the credit is a performance-based commitment, meaning the company must meet its job creation and payroll commitments to realize the benefit of the state incentive.