CLEVELAND - Excello Specialty Co., a growing supplier of plastic parts to the auto industry, is planning a $6 million consolidation in Macedonia, Ohio, of its Cleveland-area operations. Excello, headquartered in the Cleveland suburb of Warrensville Heights, plans to acquire a vacant, 112,000-square-foot plant in Macedonia owned by Royal Appliance Manufacturing Co.
The $6 million cost of the consolidation includes acquisition of the building, improvements to the property and the purchase of new production equipment, according to Excello President Wallace Jones.
``This plant is larger than our current operations and it will provide us with room to grow,'' Jones said. ``We have been adding people over the last two years. Since the middle of 1995, we have added 50 people.''
The 200-employee company operates two small plants in Warrensville Heights and a third plant in nearby Solon, Ohio. Jones said one of the Warrensville Heights plants will be converted into a research and technical center after the company consolidates its manufacturing in Macedonia.
The move to Macedonia will enable the company to add 63 jobs over the next few years, according to the Ohio Depart-ment of Development. The state's Job Creation Tax Credit Authority last month approved a 10-year income tax credit for Excello that will save the company $236,000 in taxes over 10 years.
Excello makes plastic water shields and deflectors that are applied inside car door frames to deflect rainwater and prevent it from entering the vehicle. Excello's deflectors feature adhesive backings that makes them easier and quicker to apply than deflectors that must be glued in place, according to Jones.
Jones said the move to Macedonia would enable the firm to increase its manufacturing efficiency because it could bring all its production processes under one roof. He said Excello's sales have nearly tripled over the past five years, though he declined to reveal specific sales figures.
Royal Appliance stopped using the building for vacuum cleaner assembly about a year ago when it restructured and consolidated its local operations.
Jones said he is asking the city of Macedonia and Summit County to approve the transfer to Excello of an existing 75 percent real estate tax abatement that originally was approved for Royal. Excello also is asking the city and county to approve a 75 percent abatement on personal property taxes for 10 years.
Macedonia Mayor Joseph Migliorini said he was enthusiastic about the Excello project and that he supports the company's efforts to obtain tax incentives.
Jones said Excello will make a gradual move to Macedonia when the tax approvals are granted, which could take about a month.