Posts Tagged ‘The Marmon Group’

Union Tank Car to Build 2nd Marion Plant

June 8, 2015

Union Tank Car Company will build a second plant in Marion that will double the company’s workforce in this central Ohio railroad crossroads town.

The announcement came after the Ohio Tax Credit Authority approved a 55 percent tax credit that is good for five years. The tax credits have an estimated value of $607,000.

The Chicago-based company said the expansion in Marion will create 200 jobs and an $8.3 million payroll over the next three years.

The company said the expansion was prompted by new federal guidelines for ethanol and crude oil tank cars.

Union said the new Marion facility will be used to upgrade its existing fleet to meet those regulations.

At the new facility, Union will “re-wrap” 60 tank cars a week once operations are at full capacity. In this process, tank cars are wrapped in heat-resistant fiberglass with heavy steel plate also installed as reinforcement.

Re-wrapping is expected to mitigate the consequences of derailments.

The new facility will be built at 1207 Cheney Ave. Union will continue to maintain its existing facility at 939 Holland Road in Marion.

“We do have a track record in Marion,” said Union spokesman Bruce Winslow. “We do have a very successful shop there.”

To receive the tax credits, Union agreed to maintain operations at the new facility for at least 11 years.

“We have a quick need to expand into a second facility due to the industry’s changing landscape, and found the Columbus Region to be a strategic location to grow,” said Greg Cieslak, Union Tank Car group president, in a news release. “The area offers access to the right workforce and real estate to fit our needs, and the Midwest location and rail infrastructure are convenient to our customers.”

Ronald Meade, administrator for Ohio Means Jobs-Marion County, said workers at the new Union facility will be paid $15 to $21 per hour and receive a benefits package of medical, dental and life insurance.

Union will be hiring welders and fabricators, tank car repairers, rail car switchmen, material handlers, and general labor and helpers, who must have a general welding knowledge.

Union will partner with the Tri-Rivers Career Center on a workforce development program to train applicants to work at Union. The training programs will be specific to the skills that Union requires.

The Ohio Rail Development Commission is offering Union a $75,000 grant to defray rail improvement costs on-site and to help the company reactivate the rail line at the Cheney Avenue site.

Ohio Means Jobs-Marion County will reimburse each eligible Union hire up to 50 percent of their on-the-job training wages up to a maximum of $8,000.

Job applications will be taken at Ohio Means Jobs-Marion County, Tri-Rivers Career Center and at Union’s existing Marion facility.

Applicants meeting eligibility requirements and successfully completing training are guaranteed an interview with the company, a process that is expected to begin in July.

Union had hired 25 welders back in March at its existing Marion facility.

Union also has manufacturing facilities in Louisiana and Texas. It maintains a national network of repair shops and lining shops.

Union Tank Car is owned by The Marmon Group, which is a Berkshire Hathaway company.