Staff Writer - Springfield News-Sun
A West Carrollton-based business is consolidating its operation at its Springfield location, investing $2.1 million in the plant.
City commissioners recently approved an employment incentive agreement with Certified Heat Treating Inc., 1807 W. Pleasant St., that adds two years to an original agreement with the company.
The original three-year agreement, approved last year and set to bgein next year, was worth worth about $18,000.
The new incentive was extended for two additional years for a total of five years and calls for the company to add 10 jobs, said Springfield Assistant City Manager and Economic Development Director Tom Franzen. In exchange, the city will pay back to Certified Heat Treating 35 percent of its municipal income taxes annually.
The deal will also retain 20 positions, bringing the total annual payroll to about $1.3 million, according to the incentive agreement obtained by the Springfield News-Sun.
The new deal is estimated to be worth approximately $45,000, Franzen said, dependent on how quickly the company adds the 10 new jobs and assuming it retains its current employees.
The company is expected to spend about $2.1 million on facility upgrades and new equipment, according to incentive agreement.
Heat treating is a metalworking process used to alter the physical properties of a material.
The Springfield operation performed better than expected this year, President Joe Biehn said.
It’s also perfectly situated between Dayton and Columbus, he said. Local companies Carmichael Machine Corp. and Moyno are both local businesses that use the company’s services.
“If you would throw a dart in our service area, Springfield would be the bull’s-eye,” Biehn said.
The consolidation is expected to take place this winter at Springfield’s 35,000-square-foot facility. Certified Heat Treating might also expand the building and add more jobs in the future in Springfield, Biehn said.
“We’re excited,” he said.
Currently the business employs about 40 people between the two facilities, Biehn said, and they will all be offered jobs at the consolidated Springfield plant.
The company discussed the possibility of moving its operation to Springfield last year.
“We’re glad to see that they’re moving forward with that investment,” Franzen said.
Last year, the city reached an agreement with the company after it purchased a similar business, Heat Treating Inc., for approximately $2.1 million. Heat Treating Inc. was owned by Chet Walthall, who had been in business in Springfield for several decades and retired last year.
Certified Heat Treating is owned by the Biehn Group of Companies, which also owns CB Manufacturing and American Cutting Edge, and has a total of 120 employees. CB Manufacturing is expected to take over space at the West Carrollton facility.
The consolidation is a win for Springfield, Franzen said. The business could have closed or moved somewhere else, he said.
“We’re extremely pleased they decided to grow here,” Franzen said. “We think we offer a valuable proposition for those types of companies. We think also that the manufacturing base here and growth is boding well for us and the suppliers.”