New York Governor Spitzer Announces Low-Cost Hydropower For Four Western New York Businesses

Will Create 173 New Jobs

October 31, 2007 -- New York Governor Eliot Spitzer today announced the allocation of low-cost hydropower that will help create 173 new jobs and $18.5 million in capital investments by four companies in Niagara and Erie Counties

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The hydropower allocations, which were approved by the New York Power Authority (NYPA) Board of Trustees, went to Niagara Sheets, Wheatfield; Hurtubise Tire, North Tonawanda; Ashton Products (USA), Depew; and Great Lakes Concrete Products, Hamburg. The amount of power, totaling 1,990 kilowatts (kw), is to be drawn from a block of Niagara industrial power known as Replacement Power. It is one of two large quantities of power from the project reserved for Western New York businesses under New York State law, provided at rates approximately 75 percent less than average wholesale market prices.

“The Niagara Power Project has been integral in encouraging job creation and capital investments in Western New York – it produces some of the lowest-cost power in the country and is directly tied to more than 44,000 jobs in the region,” said Governor Spitzer. “These latest allocations represent yet another step in our efforts to stimulate statewide economic growth driven by the unique strengths of each region of New York.”

“The Niagara Power Project will continue to play an essential role for lowering the cost of doing business for Western New York industries as Governor Spitzer looks to intensify economic development strategies for the region,” said Frank S. McCullough, Jr., NYPA chairman. “We’re working diligently with local and state economic development officials to maximize the project’s benefits to the region through our recurring allocations in support of new and expanding businesses.”

Niagara Sheets

Niagara Sheets was formed this year as a joint venture by three local companies: Jamestown Container Corp., Smurfit-Stone Container Enterprises and Norampac Industries. It will receive a 1,000-kw allocation in return for 64 new jobs. The new company will produce corrugated fiberboard sheets that are used in manufacturing boxes. A total of $12.5 million in capital investments are associated with the venture, including the purchase and expansion of a building in Wheatfield and acquisition of new equipment.

“The synergy of our three partners will allow us to do something special and support jobs in Western New York,” said John Bolender, president, Niagara Sheets.

Hurtubise Tire

Hurtubise Tire, a second Niagara County company, would receive a 180-kw allocation in return for 15 new jobs at its truck tire recapping business. The low-cost power is expected to build a case for the company undertaking its expansion in Western New York instead of alternate locations out of state. The firm would invest more than $1million for the purchase and renovation of a building in North Tonawanda and on new equipment.

Ashton Products

Ashton Products, a print manufacturing company whose clients include the US Postal Service, is undertaking a nearly $3 million expansion of its Western New York operations, in return for an allocation of 700 kw. The company, which has an existing facility in Amherst, is going to lease a building in Depew, leading to the creation of 48 new jobs. It is planning to modify the building and purchase new equipment such as presses and ink-jet systems. These measures are expected to contribute to its ability to compete for additional work from the Postal Service and other customers.

Great Lakes Concrete Products

Great Lakes Concrete Products, which will receive an allocation of 110 kw, is planning to add 46 jobs to a current workforce of 60 at its Hamburg facility. Its investment of $2 million on the expansion will include installing overhead cranes, rails and machinery for its concrete-mix operation. The initiative will help support the company’s expanded output of products for road construction, parking lots and home and building use.

The Western New York Advisory Group (WNAG), consisting of NYPA, National Grid, Empire State Development Corp., the Buffalo Niagara Enterprise and the Niagara County Center for Economic Development, supported the allocations. The WNAG was established in 2003 to help identify qualified companies for available industrial power from the Niagara project.

Source: New York Governor