As published in Toledo Business Journal - December 1, 2016
Magnesium Refining Technologies Inc., a smelting and nonferrous metal refining company operating under the alias Magretech, Inc. in Bellevue since 1996, has been under new leadership since June when a Chinese businessman became the new owner of the company.
A sister company under common ownership, Garfield Alloys located in Garfield Heights, was included in the purchase. It focuses on ingot sales and scrap purchases, according to information from this Cleveland-area company. Both companies are now under single ownership as MagReTech LLC, which encompasses the melting facility in Bellevue and the dross processing facility in Garfield Heights.
MagReTech purchased the former Magnesium Refining Technologies with plans to create 35 new jobs and save the existing 29 jobs, according to information from JobsOhio. An estimated $1.7 million of new payroll is resulting from the additional jobs created.
“We helped them along in a couple of different ways,” said Steve Fuhr, Bellevue economic development director. “We’re going to give them a rebate based on the Ohio Tax Credit Authority’s approval for the new construction. We just recently implemented a Community Reinvestment Area (CRA), so they will quality for a 15-year, 100% tax exemption on new construction.
“It’s going to increase the workforce, and their pay rates are pretty high, comparatively,” he continued. “They’re starting people off at over $22 an hour. It was hugely beneficial because MagReTech was going to close down at the end of this year, so we would have lost 29 jobs, but they saved those and they’re going to hire 35 more.”
“The Regional Growth Partnership (RGP) congratulates MagReTech for saving jobs, adding new investment, and bringing an exciting new technology to northwest Ohio,” said Dean Monske, president and CEO of the Regional Growth Partnership. “MagReTech will deliver needed stability and offer training and investment to both its people and facilities.”
The RGP worked collaboratively with JobsOhio and local economic development partners, including the City of Bellevue, in moving this project forward.
MagReTech is obtaining economic development incentives for this project. It will receive Community Reinvestment Area (CRA) tax exemptions for 15 years at 100% of the new building construction costs. It will also receive a Bellevue local income tax rebate that will be matched by a Jobs Creation Tax Credit from the State of Ohio.
According to industry sources, MagReTech is planning to put significant investment into its new operations. Approximately $9 million will be spent on machinery, equipment, and construction work.
MagReTech processes, recycles, and reclaims magnesium scrap for Tier 1 automotive suppliers. Customers include Meridian, Takata, and Autoliv, according to industry sources.