Alumi-Bunk invests $6 million+ in Toledo
Alumi-Bunk Corporation is in the process of establishing a 52,500 square foot manufacturing operation on 16 acres of land in the City of Toledo. This will be the company’s second manufacturing facility the other is a 60,000 square foot operation located in Ontario, Canada. An additional facility is necessary due to the increase in demand for expedite trucks by major expedite carriers, according to company sources.
The company will make a fixed asset investment of at least $6.11 million, including $800 thousand in land acquisition, $3.5 million in new construction, $750 thousand for new machinery and equipment, $1 million in on-site infrastructure, and $60 thousand in professional fees. Alumi-Bunk estimates it will create 40 new full-time positions as a result of the project.
Alumi-Bunk, based in Ontario, Canada, has been in business since 1979. It was started by four partners to manufacture sleeper cabs for class 8 tractors. In 1990, under new ownership, Alumi-Bunk initiated a program of product diversification that led to the manufacture of Cargo Van Bodies. With the popularization of just-in-time manufacturing and the need for expedite trucks, Alumi-Bunk had strategically established sales and service office in Detroit, Chicago, Atlanta, and New Jersey.
Alumi-Bunk is the largest supplier of vehicles to the expedite industry, according to company sources. Customers include FedEx Custom Critical, Tristate Expediting, Conway, Panther, and TST.
During the mid nineties, Alumi-Bunk also established a line of highend motor homes on medium duty chassis. Products range in size from a smaller Runabout to full Crew Chief motor home configurations up to 60 feet including full living quarters.
The company’s third major product line is a Snap-On Tool truck body. Alumi-Bunk is one of two authorized manufacturers of this line of bodies, which is designed to create mobile stores for tools.
The Ohio Tax Credit Authority has approved a 55 percent, seven-year job creation tax credit to Alumi-Bunk for the creation of 40 positions. The value of the tax credit will be $158,257 over the term. As part of the tax credit agreement, the authority is requiring the company to maintain operations at the project site in the City of Toledo for at least 14 years.
The Job Creation Tax Credit is a major factor in Alumi-Bunk Corporation’s decision to locate this manufacturing operation in the State of Ohio, according to the Ohio Department of Development. The company investigated sites both in Ohio and Michigan to establish this manufacturing facility, and the company already has a presence in Michigan through a sales office. The tax credit is necessary to reduce the project costs in the State of Ohio, making this proposed project site competitive with the alternatives.
The City of Toledo will provide local support for this project through a 55 percent, 10-year Enterprise Zone tax incentive for real and personal property, and a Municipal Income Tax Credit of 40 percent for seven years.
Alumi-Bunk has also been awarded a $750 thousand 166 Direct Loan at an interest rate of three percent over a 10-year period to purchase machinery and equipment. Other state assistance committed to this project includes a $100 thousand Ohio Investment in Training Program grant.
Copyright Telex Communications, Inc. Sep 01, 2005
Provided by ProQuest Information and Learning Company. All rights Reserved