Cleveland, Ohio-based Timken reached a new contract with the United Steel Workers union in Canton, Ohio on Friday, which clears the way for a $225 million expansion of the company's Faircrest steel plant.
Earlier this month, the state approved a series of tax incentives to help fund the expansion, but Timken needed the new labor deal in addition to supply commitments from customers to make the plans work.
"The company and the union were able to reach a tentative agreement that would pave the way for the most significant investment in our steel operations since we built the Faircrest plant," Salvatore J. Miraglia, Jr., President of Timken's Steel Group, said in a written statement. "The expansion would position us to increase capacity, expand product range and strengthen competitiveness."