Published: May 20, 2008 09:21 pm      

NIAGARA FALLS: Old plant gains new life

Globe Specialty Metal to revive North End site

A dormant industrial plant is planning on reopening next year and bringing 500 new “green collar” jobs to Niagara Falls.

Globe Specialty Metal, Inc., one of the world’s largest producers of metallurgical and chemical-grade silicon metal and silicon-based specialty alloys, is expanding the old Globe Metallurgical plant on Highland Avenue, which closed down production and moved to Ohio in 2003.

According to Globe CEO and Chairman Alan Kestenbaum, the $60 million investment will upgrade the equipment at the existing facility to produce about 30,000 tons of metallurgical grade silicon annually. In addition, the company plans on building a new 100,000-square-foot expansion to be operational by 2011 and turn out 4,000 tons of solar-grade silicon per year, enough to produce 500 megawatts of solar power.

“This project will add needed capacity of silicon for solar grade silicon and will be a cornerstone for New York state to realize the goal of making New York a major center for production and research for renewable energy and in particular solar energy products,” Kestenbaum said.

To make the expansion a reality, the company will receive a 40-megawatt allocation of low-cost power from the New York Power Authority and up to $25 million in tax credits and benefits for being within a state Empire Development Zone for the next 10 years.

Approval of those perks was announced Tuesday by the power authority and Gov. David Paterson.

“This is another demonstration of our resolve to revitalize economic development in Upstate New York,” Paterson said. “This project signifies how powerfully competitive New York state can be in attracting businesses when we pool our resources.”

As part of its agreement with the state, 25 percent of Globe’s Upgraded Metallurgical Grade Silicon production from the Niagara Falls facility will be used to attract new solar panel manufacturers to New York state, thus seeding the development of the “Green Collar” industry in Western New York.

Falls Mayor Paul Dyster joined a list of local, state and federal officials hailing the announcement as a jump-start to the local economy and example of the potential local growth in green industry.

“I think this is a tremendous breakthrough for us here in the City of Niagara Falls in terms of trying to retool our economy for the 21st century,” Dyster said. He pointed out the potential to leverage hydropower — using 40 megawatts of low-cost hydropower to lure 500 megawatts of solar power — and called the development proof that Paterson has not forsaken Western New York.

Daniel C. Gundersen, Upstate Chair of ESD, struck a similar note, saying, “The economic impact of the Globe deal will reach far beyond the 500 jobs pledged as we can now use this facility as an inducement to attract solar panel manufacturers to Upstate.”

State Sen. George Maziarz praised the state and power authority as working together to bring jobs back into the city. He also pointed out Globe Metallurgical had been granted 47 megawatts of low-cost power in 2002, which they attempted to take with them upon relocation to Ohio.

“This creates a lot of private sector jobs,” he said. “It creates an economy.”

The power authority announced three smaller power allocations Tuesday that should also benefit the local economy.

• Saint-Gobain Ceramics, an international company with a branch on Acheson Drive, will receive 700 kilowatts that will help add 14 new jobs to the current total of 178. The company’s ceramic products include armor materials for U.S. soldiers, according to a power authority release.

• Ceres Crystal Industries, located on Liberty Drive, is doubling its work force to 100 partly because of a 2,000 kilowatt allocation from the power authority, according to the release. The company makes zirconia crystal and is adding 21,000 square feet of space to manufacture a new product line.

• A new business, Ashland Advances Materials, is receiving 3,500 kilowatts. It will operate of the former SGL Carbon facility on Niagara Falls Boulevard and will create 75 jobs manufacturing graphite products.

The company’s products will also support lithium ion batteries for hybrid vehicles, cell phones and laptops, according to the release.