Niagara Power Transformer Plans $71.2 Million Expansion of New York Transformer Plant

en.Wedoany.com Reported - The Erie County Industrial Development Agency in New York State held a public hearing on the "Niagara Power 50" expansion project submitted by Niagara Power Transformer. The company plans to implement a six-phase, two-year expansion at its existing manufacturing campus in Cheektowaga, New York, with a total investment of approximately $71.2 million, adding roughly 96,000 square feet of manufacturing, warehousing, and office space, and creating at least 73 new full-time positions. Upon completion, the annual production capacity of custom liquid-immersed power transformers is planned to increase from approximately 90 units to 140 units, boosting manufacturing capacity by about 50%.

The expansion will be implemented on the basis of the existing manufacturing campus of approximately 121,500 square feet, with the scope of work including new production areas, manufacturing equipment, material handling and warehousing facilities, on-site utility systems, as well as engineering and administrative office space. The expanded plant will continue to be independently operated by Niagara Power Transformer, primarily producing custom liquid-immersed substation power transformers for electric utilities, municipal utilities, electric cooperatives, renewable energy projects, and industrial customers. Among the new positions, 57 are union jobs under the International Brotherhood of Electrical Workers (IBEW).

The project application documents list September 1, 2026, as the start date for equipment procurement or facility construction activities, with expected completion by June 1, 2028, and the first batch of new space anticipated to be operational starting August 2027. Of the $71.2 million total cost, the budget for new building construction is approximately $32.89 million, manufacturing equipment approximately $16.38 million, land and building acquisition approximately $5.42 million, soft costs such as engineering design and legal fees approximately $13.43 million, and environmental remediation and demolition expenses approximately $2.68 million.

The funding plan includes approximately $62.95 million in equity capital and approximately $8.25 million in public funding and tax credits, with the application documents also noting that project financing has not yet been secured. Niagara Power Transformer has also applied to the Erie County Industrial Development Agency for sales and use tax exemptions as well as real property tax abatements, with the estimated sales and use tax benefit capped at approximately $1.73 million. The related public comment period will remain open until September 22, and the tax incentives are still under review by the Industrial Development Agency.

Portions of the project construction area involve brownfield remediation. Two earthen berms containing residual PCB contamination at the 1755 Dale Road site were removed between May and June of this year; the 1746 Dale Road site and adjacent parcels are planned to be enrolled in the New York State Brownfield Cleanup Program, with subsequent investigation, remediation, and redevelopment to be overseen by the New York State Department of Environmental Conservation.