New Era Cap to Retain Facility in Western New York

ALBANY, NY (01/27/2010)(readMedia)-- Governor David A. Paterson and Empire State Development (ESD) today announced that New Era Cap will maintain its existing manufacturing facility in Derby, Town of Evans. As a result, 459 existing jobs will be retained in Western New York, with the possible addition of 75 jobs as the economy continues to rebound.

"Keeping New Era's manufacturing facilities open in Derby was of the highest importance to New York State, as it is a local, home-grown business of global recognition," said Governor Paterson. "I am very grateful for the close working relationship New York State has with New Era and am very pleased with their decision to maintain their facility in Western New York. At the same time, I fully recognize that this decision was an extremely difficult one for New Era, with one plant being saved at the expense of another. During a time when unemployment numbers are staggering, closing this plant would have been devastating to both the State and Western New York economies. I want to express my deepest thanks and appreciation to all of our partners who played a key role in keeping this plant open, especially Senator Schumer and Dennis Mullen."

New Era's decision was based on successful negotiations with New Era's union (CWA) and will be finalized once the unionized employees in the Derby facility ratify the agreement. The company will receive a package of economic development incentives from the State of New York, including approximately $3 million from ESD.

ESD Chairman and CEO designate Dennis M. Mullen said: "Manufacturing has long been the backbone to the Upstate New York economy. It is essential that New York State maintains that important legacy for the benefit of both our local companies and for new manufacturers choosing to locate here. As we enter a new age for manufacturing, we must adapt to the changing needs of this critical industry if we expect it to prosper. Under Governor Paterson's leadership, a strong, collaborative effort was made to keep New Era operating in New York State."

The company is also eligible for income tax credits through New York's Empire Zone Program. New Era may also receive assistance from other New York State agencies, including energy efficiency financing from New York State Energy Research and Development Authority (NYSERDA) and aid in the selection and screening of new employees from the New York State Department of Labor.

Additionally, the Erie County Industrial Development Agency, working together with the Town of Evans and the Lake Shore School District, will offer property tax relief via a Payment-In-Lieu of Taxes, (PILOT) agreement and sales tax abatements. National Grid has also provided generous assistance for investment in electrical infrastructure and equipment through its own grant programs. The Buffalo and Erie County Workforce Development Consortium has offered assistance with New Era's training of new employees.

###

Additional news available at www.ny.gov/governor/press | High resolution images available at www.ny.gov/governor/mediaimages | password: paterson | New York State | Executive Chamber | press.office@chamber.state.ny.us | 212.681.4640 | 518.474.8418