Niagara Power Transformer has broken ground on a more than $71 million expansion in Erie County that is expected to increase production capacity by 50% and create 73 full-time jobs.
The project will add 96,000 square feet to the manufacturer's Cheektowaga campus, according to Gov. Kathy Hochul's announcement. It will retain 146 jobs and add 73 positions, including 57 jobs represented by the International Brotherhood of Electrical Workers.
The company makes large liquid-filled power and specialty transformers, which change electricity's voltage as it moves through the grid. Utilities need that equipment to replace aging infrastructure, connect new generation and meet growing electricity demand.
The state said limited domestic manufacturing capacity and long delivery times have made transformers a constraint on grid investment.
More space and equipment
The expansion is part of the company's Niagara Power 50 Initiative. It will add specialized manufacturing equipment, expand material handling and storage, upgrade site utilities, and create engineering and administrative space.
Company President Chris Kraft called it the largest investment in Niagara Power Transformer's history. He said increased production will help customers modernize and expand their grids as manufacturing and electrification drive demand.
State support includes $4.5 million from the New York Power Authority's Western New York Power Proceeds program. Empire State Development awarded up to $3.4 million in performance-based Excelsior Jobs Program tax credits.
The site also participates in the state's Brownfield Cleanup Program and is eligible for $1.5 million in tax credits. The Erie County Industrial Development Agency separately approved nearly $2.2 million in sales and property tax abatements.
A century of manufacturing
Niagara Power Transformer's roots date to 1924. The company was recently acquired by Quanta Services, an infrastructure company, and relies on more than 160 New York suppliers in areas including steel fabrication, machining, coatings, electrical equipment, transportation and industrial services.
IBEW Local 41 Business Manager Greg Inglut said the 57 new union positions will join about 90 Local 41 members already building transformers at the company.
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