JOHNSTOWN, Ohio (July 9, 2012) — Tire repair materials and tools producer Technical Rubber Co. Inc. is upgrading its Johnstown plant with the help of a $100,000 grant and a job creation tax credit from the State of Ohio.
The funds and tax break will be used to help pay for operational equipment upgrades and the hiring of about 29 employees at the Johnstown headquarters, according to CFO Kim Hansen. The new full-time positions will include manufacturing, sales, customer service, marketing and other general posts, Ms. Hansen said.
The employees are needed to help support an increase in customer demand that has accelerated over the last year.
“We're acquiring new customers and our distributors business is growing so we are in need of new professionals,” she said. “Just like (other manufacturers), things were tough financially in 2008 and 2009 but over the past year business has really picked up.”
Sales are at or above where they were when the severe recession first hit, Ms. Hansen said.
Tech Rubber makes tire accessories for retail shops and distributors around the world under the Tech International brand. It also has plants in China and India.
“This is part of our effort to expand our production of current products,” Ms. Hansen said.
Technical Rubber also has recently secured bank financing of an undisclosed amount of money for other business investments and new hires, she said. The company turned down an additional $6.5 million loan package from the State of Ohio when it was able to secure a better rate.
The job creation tax credit is tied to a reduction in state withholding tax the company must pay, according to Ms. Hansen. She estimated the financial benefit to Technical Rubber will be about $150,000.
This report originally appeared in Rubber & Plastics News, a sister publication of Tire Business.