Governor Announces
Low-Cost Hydropower Allocations to Five Western NY Firms in Support of 215 New
Jobs and $193 Million in Capital Investments
Albany, NY (March 22,
2013)
Governor Andrew M.
Cuomo today announced that five Western New York firms will receive low-cost
hydropower to support the creation of 215 jobs and $193 million in capital
expansion projects. More than half of the new jobs will be created by Yahoo! in
its establishing of a customer call center and the expansion of its data center
in Lockport.
The allocations to the
five companies, approved today by the New York Power Authority (NYPA) Board of
Trustees, total nearly 13 megawatts (MW) (13,000 kilowatts) of power from
NYPA’s Niagara Power Project. In addition to Yahoo!, the firms are SiGNa
Chemistry, for a potential new manufacturing facility in Wheatfield, Aurubis
Buffalo in Buffalo, International Imaging Materials (IIMAK) in Amherst, and
RubberForm Recycled Products in Lockport.
“Low-cost hydropower
is one of the most effective economic development tools that we have to create
jobs in New York,” Governor Cuomo said. “The allocations approved today to five
companies in Western New York will help to create over 200 new jobs and support
major capital expansion projects. These are smart investments in the region’s
economy.”
“Governor Cuomo and
his administration have spared no effort in spurring job growth in Western New
York and the expansion of businesses through the strategic use of state
resources,” said John R. Koelmel, NYPA chairman. “Low-cost hydropower from the
Niagara Hydroelectric Power Plant has been an important part of the equation,
as demonstrated by the latest allocations approved by the NYPA Board of
Trustees, including Yahoo! The anticipated expansions are great news for
Western New York.”
“The newest power
allocations, individually and collectively, signal exciting developments for
Western New York’s economy and the Power Authority is pleased to be playing a
part in helping these companies realize their expansion goals,” said Gil C.
Quiniones, NYPA president and chief executive officer.
“Western New York’s
economy is uniquely positioned to benefit from hydropower fueled by Niagara
Falls,” said Congressman Brian Higgins. “This is just the latest example of how
jobs, too, can flow from water when we take advantage of the resources that are
naturally ours.”
“I have long believed
that the best use of low-cost hydropower is to create jobs, and the allocations
to Yahoo!, SiGNa Chemistry and Rubberform in my district and to the other
projects based in Western New York are significant proof that we are heading in
the right direction in leveraging NYPA hydropower resources for the maximum
benefit of our region,” said Senator George Maziarz. “I am pleased to work
cooperatively with Governor Cuomo, NYPA and each of the individual companies
investing in our community, on these projects, which will grow our economy and
benefit my constituents and all of the residents of Western New York."
“The expansion plans
by Yahoo and the other four companies is another sign of continued development
momentum for Western New York and highlight the role that the Niagara
hydropower plant plays as a magnet for job creation, said Sam Hoyt, regional
president, Empire State Development, New York’s chief economic development
agency. “Governor Cuomo is giving the highest priority to Western New York’s
economic turnaround, and this is exemplified by the state’s partnership with
the latest hydropower recipients.”
The low-cost
hydropower to the five companies will be provided under seven-year contracts,
with the allocations drawn from two blocks of Niagara electricity known as
Expansion Power and Replacement Power. In addition to new permanent jobs, the
capital investments by the companies are expected to support hundreds of
construction jobs.
Yahoo! will receive a 7.2 MW allocation for a
customer call center that will create a minimum of 100 jobs. The web company
also plans to expand its state-of-the-art Lockport data center and add 15 new
positions to the facility’s current workforce.
In addition to
hydropower, Yahoo! will be provided by ESD up to $2 million in Excelsior tax
credits over 10 years as further incentive for its expansion plans.
Yahoo! also will
contribute $500,000 per year to the Community Foundation for Greater Buffalo, a
not-for-profit organization that administers charitable funds for the benefit
of Western New York. The funding will be used to advance specific priority
economic development strategies identified by the Western New York Regional
Economic Development Council.
“We are happy to be a
part of the Western New York community and are excited about our expansion
plans. We are appreciative of our close partnerships with local municipalities
and are grateful to our outstanding workforce in Lockport,” said David Dibble,
Executive Vice President of Central Technology for Yahoo!. “Yahoo! is committed
to being an environmentally responsible company, and we thank New York State
and local authorities for working with us to ensure we continue to power our
data center with clean energy.”
SiGNa Chemistry, which has a growing portfolio of “green”
chemical products used by oil-recovery and fuel-cell industries, will receive
2.5 MW of Niagara power to establish a potential new manufacturing facility in
Wheatfield that will initially lead to 50 new jobs. The number of jobs could
double over time as demand for its industrial powder materials grow. By year’s
end, SiGNa expects to launch the new manufacturing facility in a
15,000-square-foot space that could be expanded for increased production.
Aurubis Buffalo will receive a 2.8-MW allocation to
boost production at the company’s copper and brass rolling mill. The low-cost
power would support the purchase of a new $9.5 million customized furnace and a
$2.4 million investment to revive an idled rolling mill. The planned
improvements at the Buffalo facility would add 35 new jobs to an existing
workforce of 675 employees. Aurubis is also Empire Zone certified to receive
benefits.
IIMAK, an international manufacturer of thermal
transfer ribbons, barcode ribbons, direct thermal films and fluid inks for the
printing industry, will receive an allocation of 200 kilowatts (kW) of
hydropower to support a planned $2 million capital investment for an equipment
expansion at the company’s Amherst facility. IIMAK will add three new jobs to
its Amherst workforce of 355. In addition, IIMAK will receive $640,000 in
Excelsior tax credits from ESD.
Rubberform Recycled
Products, a manufacturer of
recycled rubber products for traffic safety, home improvement, shipping and
marine products industries, will receive a Niagara hydropower allocation of 200
kW and a $250,000 Environmental Investment Program grant from ESD in support of
a $500,000 expansion that includes a new recycled-material production line. The
company has committed to add 12 new jobs at its Lockport facility, which
currently has a workforce of 15 employees.
Under state law, allocations of power to
Western New York businesses from the Niagara plant are for firms within a
30-mile radius of the hydroelectric facility, or in nearby Chautauqua County,
at a price that is currently more than 40 percent lower than wholesale market
electricity in the region. The hydropower is linked to tens of thousands of
jobs at more than 100 businesses in the region with a combined payroll of more
than $2 billion.
