Construction is to start immediately by Abbott Laboratories on a $270 million project to build a nutritional drinks manufacturing plant in Tipp City, the company said Monday following approval of a state incentive package.
The Ohio Tax Credit Authority approved Monday a 75 percent, 15-year Job Creation Tax Credit for Abbott worth an estimated more than $8 million, said Stephanie Mennecke, a spokeswoman for Ohio Department of Development. That’s the largest value tax credit approved Monday, she said.
The second largest was for approximately $4.5 million for a Republic Steel and Republic N&T Railroad Inc. expansion in Lorain, she said. The authority approved 11 total incentive packages Monday.
The Ohio Development Financing Advisory Council also approved Monday a $1.5 million, 10-year, 0 percent interest loan for Abbott’s project.
“There were many factors that lead us to the decision to build a new plant in Tipp City including direct access to a major interstate, quality of available work force, and state and local incentives,” said Abbott spokesman Pete Paradossi in an email Monday. “Other locations were being considered. In the end, Tipp City was the best choice for this plant.”
Sites in Indiana and Canada were also considered by the Illinois company. The Tipp City plant will create about 240 jobs, according to Abbott.
Tipp City Council members will vote April 2 on a local incentive package for the Illinois-based company, said Brad Vath, Tipp City Assistant City Manager. Vath did not say Monday what the city plans to offer. He said the city is optimistic everything will fall in place and the project will move forward “very, very quickly.”
Pilot Chemical Co., which operates a Butler County facility in Middletown, also received a tax incentive Monday. Pilot received a 50 percent, six-year tax credit worth an estimated $182,006, according to Gov. John Kasich’s office. The Sharonville-based company is planning an expansion at its headquarters, as well as a $42 million expansion project at either its Middletown or Houston, Texas, facilities.
Kasich’s office said Pilot’s project would create an estimated 38 full-time jobs.
The tax credits and loan are still pending Ohio Controlling Board approval