Weastec, Inc., a Hillsboro (Highland County) automotive supplier, has been awarded a $2.5 million 166 Direct Loan through the Ohio Automotive Supplier Zero Percent Financing Initiative. The loan, which is administered by the Ohio Department of Development, was approved today by the Development Financing Advisory Council (DFAC) and is pending approval of the State Controlling Board.
The more than $10 million project is expected to create 42 jobs and maintain 447 positions at the project site within the first three years of the project's initial operation.
Weastec, Inc., founded in 1998 as a subsidiary of Toyo Denso Co. Ltd., is an auto parts manufacturer headquartered in Tokyo, with three manufacturing facilities and one engineering office in Ohio. The company's Ohio operations produce electrical components for the automotive industry with primary products that include ignition systems, sensors and cabin switches.
As part of its expansion project, the company plans to purchase new machinery and equipment that will be used to produce ignition coils for a major automaker.
Ohio's zero percent financing initiative applies to several loan programs available through the ODOD and will be applicable during the first 24 months of the loan. Following the special promotion period, loans will be subject to standard low interest rates for the remainder of the term.
Eligible businesses include tier I and tier II automotive suppliers that are either locating or expanding operations in Ohio. Applicants must be engaged in specialties that include manufacturing and/or related automotive research and development, and eligible projects must be directly related to the production of automotive parts for passenger vehicles and/or light trucks.
In August 2006, DFAC approved the first loan through the Zero Percent Financing Initiative to YSK Corporation (YSK) located in Chillicothe (Ross County). The company was awarded a $2.5 million 166 Direct Loan to purchase of new machinery and equipment to be used for increased production of automotive parts, which will allow the company to pursue new business opportunities. That $24 million project is expected to create 25 jobs and retain 227 positions at the project site within the first three years of the project's initial operation.
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