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Low-Cost Hydropower Helps Keep Rubber Products Manufacturer in Western New York for 25 New Jobs

Contact:
Michael Saltzman
914-390-8181
michael.saltzman@nypa.gov

February 27, 2007

FOR IMMEDIATE RELEASE

WHITE PLAINS—The New York Power Authority (NYPA) trustees Tuesday approved the latest allocation of low-cost industrial hydropower from the Niagara Power Project, helping to keep a rubber products manufacturer in Western New York from moving to Indiana, and facilitating its plans to add 25 new jobs to a current work force of nearly 50.

Moldtech, Inc., will receive an allocation of 400 kilowatts in return for the new jobs and $3.6 million in additional capital investment. The power will come from a block of hydropower know as Replacement Power, which together with a second block of Niagara project power is directly linked to some 43,000 jobs in Western New York.

The Western New York Advisory Group (WNAG), consisting of NYPA, National Grid, Empire State Development Corp., the Buffalo Niagara Enterprise, and the Niagara County Department of Economic Development, recommended the latest Niagara allocation. The WNAG was established in 2003 to help identify qualified companies for the project’s available low-cost power, sold at a fraction of market electricity prices, to spur the creation of jobs in the region. The coordinated effort since then has led to the allocation by the Power Authority of about 100 megawatts (one megawatt equals 1,000 kw) to nearly 70 companies.

Moldtech is moving its manufacturing operations from Lancaster to a larger facility in nearby Amherst to have sufficient space for expanded production capacity. It had been considering a site in Anderson, Indiana, before deciding to stay in Western New York. The company is also pursuing other local and state government incentives in support of the expansion, which will include seven new injection presses, to go with the 15 it currently operates.

Established in 1994, Moldtech began with small, local industrial customers for its rubber-molded products and services, and today has expanded to industries such as automotive, medical, electrical, agriculture and defense. The products include gaskets, electronic seals, and medical masks.

In addition to Western New York businesses and industries, the low-cost power from the Niagara project lowers the electric bills of customers served by National Grid, New York State Electric and Gas, and Rochester Gas and Electric. Others benefiting from the project include ratepayers served by 17 Western New York municipal electric systems and rural cooperatives.

About NYPA:

 ■    NYPA uses no tax money or state credit.  It finances its operations through the sale of bonds and revenues earned in large part through sales of electricity.  ■    NYPA is a leader in promoting energy-efficiency, new energy technologies and electric transportation initiatives.  ■    It is the nation’s largest state-owned electric utility, with 18 generating facilities in various parts of the state and more than 1,400 circuit-miles of transmission lines.

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