Armonk, New York-based Trinity Packaging planning US$6.5M expansion of its manufacturing plant in Cheektowaga, New York, formerly that of Cello-Pack, which the company acquired in 2012
ALBANY, New York
March 27, 2014
– Cheektowaga Company to Keep 129 Jobs in Western New York and Create 21 More
Governor Andrew M. Cuomo today announced that the New York Power Authority (NYPA) Board of Trustees has approved an allocation of low-cost hydropower to Trinity Packaging Corp. of Cheektowaga for a planned $6.5 million expansion of its manufacturing plant and commitment to retain 129 jobs and create 21 new, good-paying jobs.
“One of Western New York's top resources, clean, low-cost hydropower, is a key element in reinvigorating the region's economy,” Governor Cuomo said. “This is yet another example of a public-private partnership in which both parties work together to meet the needs of businesses that choose to grow and invest in New York State, our families, and communities."
Trinity Packaging, headquartered in Armonk, is a national industry leader in the manufacturing of flexible packaging products for various industries. In 2012, the company acquired Cello-Pack, a Cheektowaga-based manufacturer that has been in operation since 1948. While planning an expansion of its operation, Trinity’s management considered a sister facility in Virginia but instead chose to grow in Erie County. Trinity’s current initiative will include the relocation of inventory and the acquisition of new manufacturing equipment designed to increase flexible packaging production by 25 percent.
The power allocation will be drawn from a block of hydropower, known as Replacement Power, from NYPA’s Niagara Power Project. It is one of two large portions of power from the plant—the other is called Expansion Power—that are directly linked to tens of thousands of Western New York jobs. About 40 megawatts (MW) of the total 695 MW provided for under the Replacement Power and Expansion Power programs remain available for allocations to qualifying businesses, where one MW is enough electricity to power 800 to 1,000 typical homes. Under state law, this power is reserved for job-producing businesses within a 30-mile radius of the Niagara project.
NYPA Chairman and Erie County resident John Koelmel said, “The cost of electricity was a major factor in Trinity Packaging’s decision to expand its Western New York operations, instead of investing in another plant out of state. Low-cost power from NYPA’s Niagara Hydroelectric Power Project proved to be the tipping point in ensuring that another critical manufacturer stays and grows in the Buffalo-Niagara region. This is another example of Governor Cuomo’s business-savvy thinking that the best use of public resources is to encourage job growth and private-sector investments.”
President and CEO of NYPA Gil C. Quinones said, “The manufacturing sector anchors Western New York’s industrial base and is critical to the state’s economy. The Power Authority’s low-cost hydropower will help Trinity Packaging to expand its operations, create jobs and invest millions in the region.”
NYPA Trustee and Erie County resident Terrance Flynn said, “In a highly competitive industry, every penny counts. That is why the savings from low-cost NYPA power give companies like Trinity Packaging the edge they need to be leaders in the national marketplace.”
Other economic development incentives for Trinity's proposed expansion include up to about $550,000 in Excelsior Jobs Program support from Empire State Development, up to $400,000 from New York State Electric and Gas for electric infrastructure upgrades and approximately $73,500 in sales tax savings from the Erie County Industrial Development Agency.
Congressman Brian Higgins said, “Western New York has a unique resource, low-cost Power Authority hydropower, which has, once again, been successfully leveraged to bring more jobs and capital investment to our region. Trinity Packaging has made the right choice in choosing Western New York as its home for today and for its future.”
Senator George D. Maziarz said, “As Western New Yorkers, we want to get the maximum benefit from our greatest natural resource—Power Authority low-cost hydropower. Today’s award of power to Trinity Packaging is a regional home run for the state and local economies, and most importantly, the families of Trinity employees.”
Senator Timothy M. Kennedy said, “Trinity Packaging’s plans to expand in Cheektowaga is a major vote of confidence in Western New York’s workforce and reflects the steadily improving business climate resulting from Governor Cuomo’s progressive approach to economic development. Through hard work and intelligent investments like this, we are fostering economic growth, creating good-paying jobs and helping to put Western New Yorkers to work.”
Erie County Executive Mark C. Poloncarz said, “It is good news that Trinity Packaging is not only choosing to stay in Erie County but to grow their operations there as well, bringing new jobs with a major expansion. Using NYPA power to fuel this growth is a good example of a public-private partnership that is bearing fruit locally and is using our unique hydropower resources to drive that growth.”