Press Release from Ohio Rail Development Commission

ORDC Approves Grant Funding to

Nova Tube & Steel, Delta

On January 19, 2022, the Ohio Rail Development Commission (ORDC) approved a grant in the amount of $100,000 to assist Nova Tube & Steel (Nova Tube) with the installation of rail infrastructure at its new location near Delta, Ohio.  Nova Tube is in the process of constructing a $105 million facility in order to expand its capabilities in the Midwest. Nova Tube will hire over 102 new employees at the facility once complete and in full operation.  The cost of the new rail infrastructure for this project is estimated at $1,720,000.

A subsidiary of Nova Steel Inc., a Canadian company founded in 1979, Nova Tube remains a privately-owned Canadian based company, servicing the automotive, construction, mining, agriculture, transportation, plumbing and heating, HVAC, waste equipment, rail, and other related industries across North America.  Nova Tube manufactures square, rectangular and round hollow structural section tube in various thicknesses.

The new facility in Delta will consist of one new slitting line and two new Electric Resistance Welding tube mills. The company will produce hollow structural sections and standard pipe for a diverse number of industries from construction applications and infrastructure to mining, solar energy and defense. This project represents a $70 million investment for the company, a strategic position chosen to better serve its existing customer base and support the company’s overall growth strategy from the region.

Matthew Dietrich, Executive Director of the Ohio Rail Development Commission, said “This project is an excellent example of how public and private partnerships can work in tandem to assist companies expanding in Ohio.  The new rail infrastructure will be a tremendous asset to Nova Tube in helping to move its products.  We are proud to assist this company and support its employment efforts in the region.”

“Due to increased steel output locally the demand for steel haul trucking will also increase; we anticipate shortages or difficulties securing adequate trucking service to meet our requirements.  Supplementing our transportation needs with rail service will alleviate a portion of our trucking availability concerns.  Additionally, rail shipments will significantly reduce Co2, and other harmful emissions compared to trucking.  We appreciate ORDC assistance in this regard,” said Mike Droski, Project Manager, Nova Tube & Steel.

***

ORDC assists Ohio companies and communities in creating and retaining jobs by preserving rail ORDC assists Ohio companies and communities in creating and retaining jobs by preserving rail service to existing shippers and providing rail service to new customers.   In addition, the ORDC funds projects to improve railroad-highway grade crossings to increase safety to the traveling public.  Please remember, when around railroad tracks always expect a train.   Rail lines in Ohio are private property and trespassing is both strictly prohibited and extremely dangerous.

For additional information regarding this project or for additional information on ORDC, please contact Wende Jourdan at (614) 728-9497.

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