Columbus, Ohio-based Worthington Industries is considering investing nearly $8.5 million in its recently purchased manufacturing facility in Theodore in a bid to consolidate operations.

The global diversified metal manufacturing company with fiscal 2015 sales of $3.4 billion is weighing the benefits of moving its CryoScience trailer production facility in Boston to either Westerville, Ohio, or Theodore, where it now operates a CryoScience facility. Worthington purchased the Theodore plant in December 2015 after its pressure cylinders segment acquired the CryoScience assets of Taylor Wharton out of Chapter 11 bankruptcy.

Jeff Holyoak, Worthington’s commercial director for LNG/Cryogenics, said the company does not own the property in Boston and whatever site is chosen will be operating by June.

Worthington Industries cryogenic transport trailers like this could be built in Theodore. (Worthington Industries)

In turn, the city of Mobile’s Industrial Development Board on Wednesday approved Worthington’s 10-year tax abatement request on roughly $4.6 million in new equipment pending some unanswered questions for counsel.

The Theodore project, which Mobile Area Chamber of Commerce analysis revealed would generate roughly $19 million in total taxes collected during the abatement period, would create an additional 61 jobs by 2019 with average annual salaries of $48,000. Because Worthington rehired 57 of the 112 Taylor Wharton employees terminated when the company filed for bankruptcy, the chamber’s cost analysis for the abatement request reflects total employment of 118 with average annual salaries of $55,000.

If the Theodore project moves forward, total ad valorem and sales tax exemptions would be $270,901 in the first year and $528,418 throughout the abatement period.

Worthington Industries produces a number of cryogenic storage containers like these cylinders. (contributed)

The request addressed new equipment purchases only because there appear to be questions surrounding whether abatements have already been granted for the structure in question. The board’s counsel is investigating whether any abatements awarded to Taylor Wharton can be transferred to Worthington and how the bankruptcy affected their standing, as well as whether Worthington has any other abatement avenues and if they would be considered double dipping.

Company documents provided to the board indicate Worthington paid $6 million to purchase the Theodore facility and plans to invest an additional $3.85 million in building improvements and repairs.

“This is an all or nothing deal,” said David Rodgers, the chamber’s project manager for the Worthington request. “If the Boston operations are moved to Ohio, Theodore (operations) will, too.”

Holyoak said Worthington had explored intermittently the possibility of acquiring Taylor Wharton for about 10 years before seizing the opportunity in December.

“The big driver was gaining a footprint for manufacturing in the United States and adding cryogenics,” he said, noting that the planned consolidation not only boosts efficiencies but affords the company a more diverse product line to better weather gross domestic product fluctuations.

According to a statement issued at the time of the Taylor Wharton acquisition, Worthington “plans to leverage the manufacturing assets of the Theodore, Ala., facility to produce hydrogen, industrial gas and LNG cryogenic transport trailers that are currently being produced in its Boston facility (formerly James Russell Engineering), and eventually move all transport trailer production to Alabama. In the future, this facility could also provide industrial and LNG products such as bulk, microbulk and engineered systems for gas and liquid applications in markets including energy production, industrial fabrication and manufacturing, and hydrogen distribution.”