Ohio Grants Tax Break for Formica's Relocation

Cincinnati, Jan. 27--The state has approved a tax break worth at least $600,000 to persuade Formica Corp. to move its 21-person corporate headquarters from New Jersey to downtown Cincinnati, a 15-minute drive from its North American manufacturing offices and main plant. The Ohio Tax Credit Authority on Monday endorsed a 60 percent, eight-year tax credit in exchange for Formica's commitment to move the headquarters from Warren, N.J., which is to be done by March 31. The company will ask Cincinnati to approve a similar break on city taxes, Formica spokesman Richard Wool said Tuesday. The state tax credit requires that Formica stay in downtown Cincinnati for at least 16 years. Ohio Department of Development officials expect the tax credit could range in value from $600,075 to $750,000, depending on how quickly Formica establishes its headquarters and hires employees. Formica makes countertop and laminate surfaces. The company also had considered a northern Kentucky location, Wool said. The Cincinnati location will allow Formica's top executives to be closer to the suburban Evendale operations where about 400 people are employed, Wool said. A federal bankruptcy judge in New York City on Jan. 13 approved Formica's plan for emerging from the court's supervision under Chapter 11 bankruptcy reorganization. Formica is negotiating lease terms with owners of the Chemed Center office building in Cincinnati. Any lease must be approved by the bankruptcy court until Formica is formally released from the court's supervision, which could occur within the next two months, Wool said. On Monday, Formica announced it had sold its Algona, Wash., laminate-flooring factory to Berkshire Hathaway for $7 million. The Algona factory employs 30 people. All of them will be offered jobs by Berkshire Hathaway's Shaw Industries Group.

Related Topics:Shaw Industries Group, Inc.

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