Whirlpool Corp. & Penske Logistics, LLC, to be located in Columbus, Ohio, has been awarded a 60 percent tax credit for a five-year term to establish a distribution facility.

The value of the tax credit is estimated at $749,597 over the term, and the company would be required to maintain operations at the project site for 10 years. Penske Logistics is a wholly owned subsidiary of Penske Truck Leasing, which was founded in 1969.

Penske Logistics became a division of Penske Truck Leasing in 1995 with its acquisition of Leaseway Logistics and has become one of the world's leading providers of logistics, transportation and distribution services.

Global corporations such as the Ford Motor Co., General Motors Corp. and Whirlpool have teamed with Penske Logistics to reduce supply chain costs, increase market share, and improve profitability. Whirlpool and Penske Logistics have worked closely to maximize the use and transition of existing facilities as well as developing new facilities to achieve an optimal network design for Whirlpool.

The companies propose to establish a 1.5 million square foot Regional Distribution Center that will be one of 10 located throughout the United States, and one of five that handles both high and low volume products. Whirlpool will own the new facility, and Penske Logistics will act as the third party logistics company for Whirlpool. At this center, appliances in bulk will be received from various Whirlpool manufacturing facilities, stored and shipped out as orders are received.

Penske Logistics will create 199 new jobs within the first three years of the project's initial operations and Whirlpool will relocate and backfill 70 full-time employees from its Clyde facility. Ohio is in competition with Kentucky and Iowa for this more than $75 million project.

The Job Creation Tax Credit is a refundable tax credit against the business corporate franchise or income tax. The credit equals a percentage of new state income tax withheld on new, full-time employees in Ohio.

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