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June 07, 1999 02:00 AM

OHIO'S CUSTOM PLASTECH PLANS MANTUA MOVE

David Prizinsky CRAIN'S CLEVELAND BUSINESS
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    Custom PlasTech Ltd., a 3-year-old plastic products manufacturer in Newbury, Ohio, plans to move to Mantua Township in Portage County and to expand its operations to keep pace with growing demand.

    Robert Zab, general manager of Custom PlasTech, said the 10-employee company wants to begin construction of a 24,000-square-foot plant by midsummer. Zab said the company would like to be operating in the building by the end of the year.

    But Zab said several issues still need to be resolved before construction can begin. Most prominent of the issues is the approval of a real and personal property tax abatement on the project by the township and county.

    In late May, the Ohio Tax Credit Authority in Columbus approved a five-year income tax credit for Custom PlasTech that is expected to save $20,000 during the period. The state tax credit was approved in exchange for the firm's promise to create 25 jobs over several years as part of the relocation.

    The Tax Credit Authority said Custom PlasTech will invest $2.6 million in machinery and equipment. Zab said the firm will spend about $1 million to build the plant.

    Custom PlasTech currently leases 10,000 square feet in Newbury and needs more room to accommodate new manufacturing equipment and increased inventory, Zab said. The new site — near Aurora, Ohio — is large enough for Custom PlasTech to expand the plant to 150,000 square feet, a development Zab described as a long-term goal for the company.

    Zab said Custom PlasTech was formed in 1996 when it bought the production assets of Lobo Containers Inc. of Sarasota, Fla., which operated a plant in Newbury. Custom PlasTech is a supplier of large containers to Lobo, which decided to outsource manufacturing operations.

    Zab said Custom PlasTech operates two blow molding machines. He said the company over the long term plans to operate eight machines capable of producing large plastic parts.

    Among Custom PlasTech's projects on the drawing board are plans to expand manufacturing of products from recycled plastics. Those products include barricades and sign stands, Zab said.

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