Industrial recycler First State Plastics Inc. is expanding from its Delaware base into a facility in northwest Ohio, to tap into Midwest plastics markets.
The company plans to open a 75,000-square-foot facility in Toledo, Ohio, in November, and during the next three years will expand its capacity to 50 million to 60 million pounds, said Philip Corvo, president of the New Castle, Del., firm.
The scrap recycler will expand its marketing to the 20 percent of the U.S. plastics industry located within 250 miles of Toledo, he said. First State is investing about $575,000 in the project.
The strategy is geographic: About 20 percent of the plastics industry is also within the same distance of its Delaware headquarters, he said. ``It doubles our potential supply,'' he added.
The company, which formed last year when Corvo and two others bought the assets of First State Recycling and renamed it, handles mainly commodity resins like polypropylene and polyethylene. The Ohio plant principally will do grinding and shredding, he said.
To qualify for $136,000 in state tax incentives and rebates, the firm has agreed to create 48 jobs during the next three years and maintain operations there for a decade. The state granted the company a five-year, 55 percent tax credit, and the city of Toledo gave it tax breaks worth another $15,000, Corvo said.
The company's 100,000-square-foot New Castle plant employs about 60. Corvo declined to disclose details of its manufacturing capacity.