Xtalonix plans expansion

June 12, 1997


Staff Writer

Not all military downsizing means a loss of jobs for communities. In fact, fewer defense dollars will mean more jobs at a new local company.

Xtalonix Products Inc., which moved from Ohio to Hagerstown in March, expects to grow in a big way, according to President Dale Kline.

The former defense contractor's business is expected to increase four-fold this year, and will create up to 150 jobs locally over the next few years, Kline said.


Xtalonix (pronounced X-tah-lawn-icks) was once a defense contractor that provided wireless communication parts for military aircraft. It changed course in 1995 when Kline and other Maryland investors bought into the then Columbus-based company.

Kline said the decision to relocate to Hagerstown made sense - Maryland has a lot of engineers, renting land in Hagerstown was 30 percent cheaper than in other locations and Hagerstown has a large labor pool.

He said the clincher was the space available at Top Flight Air Park, near Washington County Regional Airport.

According to Top Flight owner Barrie Peterson, the facility is 1 million square feet.

Kline said Xtalonix occupies 42,000 square feet, and will double that in the near future.

It helped that Top Flight is in an enterprise zone. "It gives us tax advantages," Kline said.

Maryland enterprise zones are designed to encourage job creation by offering a $500 corporate tax credit for each new job created. That is a one-time credit, according to Beverly Baccala of the Hagerstown-Washington County Economic Development Commission.

Companies can earn six times that if they hire unemployed people.

As Kline's employment projections include 150 new jobs that will pay $8 and $10 an hour the company could earn $450,000 over three years.

Kline said Xtalonix is poised to do well for several reasons. He said the wireless communication market is among the fastest growing in the world, and Xtalonix's client list of 350 includes three of the world's top four wireless communication manufacturers - AT&T, Ericsson and Nokia.

The Hagerstown plant makes ceramic power and parts that are used to absorb high-frequency radio signals and filter out unwanted low-frequency signals on devices like cellular phones.

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