London-based Xchanging looks at Cleveland Plus region for hundreds of jobs

6/30/2009

A London-based company providing back-office services to prominent U.S. companies is eyeing the Cleveland Plus region to establish its largest American facility.

Xchanging Inc. could add up to 785 jobs -- averaging $20 an hour in wages and benefits -- to a 250-person work force already in the area, company and state officials said.

"It's obviously a very exciting project for us and the region," said Tom Waltermire, head of Team NEO, the region's business-attraction group. "They are a top-flight company."

Officials emphasized the deal is not done. But it appears to be close.

Xchanging eyed a site Indiana, too, in a quest to establish a Midwest market. The company likes Ohio's work ethic, ready work force and quality education system, said Steven Beard, head of Xchanging's North American operations.

"We do believe there is an attractive work force there for us to get back to work," Beard said when asked about the area's growing pool of jobless talent.

Xchanging also liked Ohio's tax break deal. The Ohio Tax Credit Authority on Monday approved a nine-year, 70 percent credit on state taxes for Xchanging and its affiliate, Cambridge Integrated Services Group Inc., which has a Solon office.

The job-creation tax break is worth up to $4.5 million. The company would have to remain at its new site for 18 years, and would create 785 full-time jobs within three years of the facility's opening, the state said.

Beard would not discuss the proposed site because a real estate deal isn't done. The site is within 10 to 15 minutes of Cambridge's offices on Solon Road, Beard said. The 250 jobs now in Solon would move to a new site that would be the largest of Xchanging's 15 business-processing centers in the United States, Beard said.

Xchanging would enter a 15-year lease for a 120,000-square-foot facility and plans an $8.9 million investment in the project.

The tax break is needed to compete with incentives Indiana offered, officials said.

As a local match for the state tax break, Cuyahoga County would provide a $1.5 million loan at 2 percent interest. The loan terms would save Xchanging $367,500, the state reported.

Beard credited state officials, including Gov. Ted Strickland, and area business leaders with a compelling sales pitch.

The company has about 8,800 workers across the globe, including 1,500 in the United States. Most of the U.S. workers result from Xchanging's acquisition of the Cambridge company earlier this year, Beard said.

Business at the Cambridge offices in Solon includes handling accident claims for cars rented with American Express cads and MasterCards.

Other clients include Wal-Mart and Southwest Airlines, for whom Xchanging handles workers' compensation claims, Beard said.

Much of what Xchanging does in Europe is handle services for big banking and insurance interests.

Ohio's tax credit authority approved other tax-break deals Monday, among them:

reXorce Thermionics Inc. of Akron -- The tax credit would be worth $732,063 over sevens years, for a $1.4 million expansion. The work would create up to 59 jobs and retain 18.

MGA Entertainment Inc. of Hudson -- The tax credit is worth $134,228 over seven years, for a $5.8 million project that would create up to 63 jobs and retain 39.

Longbow Research LLC of Seven Hills -- The tax credit would be worth $662,641 over seven years, for a $50,000 project is expected to create 26 positions and retain 63 jobs.

 

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