AK Tube LLC has received a tax abatement from the city for $1.6 million worth of planned improvements for an expansion.
The company, at 150 W. County Road 450S, is planning a 28,000-square-foot expansion that will add industrial and storage space, said Robin Hilber, community development programs coordinator for the city.
The Columbus City Council approved a 10-year tax abatement request for the company, which is a subsidiary of AK Steel Corp. based in West Chester, Ohio. The company manufactures carbon and stainless steel mechanical tubing.
The expansion will allow the company to install mechanical tube re-cutting machinery equipment, said Michael Tuomey, AK Tube vice president of finance, in a letter to the city. In addition to $1.6 million in planned improvements, the company also plans $400,000 in reconfiguration costs, Tuomey said.
The company said the abatement will allow it to retain 121 jobs while adding 21 new jobs by February 2018 with an expected average wage of $18 per hour. The tax abatement will save the company an estimated $203,979, the company said.
AK Tube’s estimated annual payroll is $6.65 million, according to its tax abatement application filed with the city.
Tom Greco, AK Tube’s director of operations, said construction on the expansion has started and is expected to be completed by mid-August.
AK Tube’s building was formerly used as a central tubing facility by Arvin Industries, which received a tax abatement from the city in 1997, Hilber said.
The company has been in Columbus since 2003, said Rebecca Malburg, project manager with the Greater Columbus Economic Development Corp.
Address: 150 W. County Road 450S, Columbus
What they make: Carbon and stainless steel mechanical tubing
Number of employees: 121
Number of years in the city: Since 2003