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NYPA Grants Alita Low Cost Hydropower

Buffalo, NY (WBEN) Alita announced plans to build a steelmaking plant in South Buffalo two weeks ago. Now, the ball is rolling to make sure that plan doesn't rust.

The New York Power Authority Board of Trustees granted four megawatts of low cost hydropower to Alita USA to build a 340,000-square-foot pipe mill in Buffalo. The $102 million project would create 157 jobs at the company’s Western New York facility and another 15 jobs at a new corporate administrative office to be based in New York. 

“Alita USA Holdings would be a welcome addition to Buffalo,” said John R. Koelmel, NYPA chairman and an East Amherst resident. “Western New York is making great strides under the leadership of Governor Cuomo toward advancing economic development, including the manufacturing sector. The substantial capital investments and new jobs from Alita’s pipe mill would be of enormous benefit to the region, and a credit to the coordinated efforts of state and local governments.”

“Niagara’s hydropower is one of the most effective economic development tools for the Buffalo-Niagara region, with tens of thousands of jobs directly tied to the low-cost allocations of power,” said Gil C. Quiniones, NYPA president and chief executive officer. “The plans by Alita for the construction of a new pipe mill plant, in return for the hydropower and other government incentives, are a sign of the significant progress under way through Governor Cuomo’s innovative measures for turning around the area economy.”

In addition to the low-cost hydropower, NYPA, Empire State Development and the Erie County Industrial Development Agency are in the process of developing an incentive package of roughly $10.4 million in grants and tax credits in support of Alita’s Buffalo facility. This includes a $2 million award recently recommended by the Western New York Power Proceeds Allocation Board that the NYPA trustees will consider after a required state environmental review.

“Buffalo's steel-making history is setting the stage for a future success story,” said Empire State Development President, CEO & Commissioner Kenneth Adams. “Alita USA is focusing on this area to locate a $102 million steel manufacturing facility because of the talented workforce, location and infrastructure. Now we are being rewarded with 157 well-paying jobs. 'Steel Jobs Coming to Buffalo'—that's a headline that makes all of Western New York proud.”

“In order to drive the Western New York economy and to keep New York on the map as a national leader, it is important that we bring new companies to the area,” said Senator George D. Maziarz. “Alita will create an estimated 157 jobs in Western New York, and I am pleased of the support they are receiving from the New York Power Authority. A new company creating new jobs is exactly what this region needs to continue its economic development and growth.”

The low-cost hydropower to Alita will be provided under a seven-year contract, with the allocations drawn from a block of electricity, known as Replacement Power, generated at NYPA’s Niagara Hydroelectric Power Plant.

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