A metal fabrication and processing company was recently awarded low-cost electricity from New York State that it will use to make improvements to its Bay Shore facility rather than move to Florida, officials said.
Clad Metal Specialties Inc. will receive 106 kilowatts from the state Power Authority’s ReCharge NY program in return for buying at least $80,000 in equipment. One of the planned purchases is an additional furnace for use with metals to fulfill defense and aerospace orders.
Authority officials said the business has promised to maintain a minimum payroll of 21 workers for the seven years that it will get the cheap electricity. The payroll now totals 24.
Clad was among three local entities to secure power allocations last month. Northwell Health, with its headquarters in New Hyde Park, received two allocations.
“Any reduction of expenses is helpful,” said Clad owner Denise Marcoccia, estimating the allocation will reduce the company’s electric bills by $12,000 per year. “Everything helps.”
The business makes metal cladding used in airplanes, household appliances, automobiles, electronics, medical devices, satellites and weapon systems. It’s a second-generation family-owned business dating to the 1970s under a different name.
Marcoccia said the Power Authority is among several agencies helping her to reduce costs and become more competitive. Others are the Small Business Development Center and the Manufacturing and Technology Resource Consortium, both at Stony Brook University, and the Workforce Development Institute.
“You have to always reinvent, you cannot get comfortable with where you are,” she said. “We’re staying afloat on Long Island, and we’re looking to grow.”
The ReCharge NY electricity is produced by dams near Niagara Falls and along the St. Lawrence River upstate, not by plants burning fossil fuels, according to Authority CEO Gil C. Quiniones.
Among the latest power recipients, Northwell was allocated 1,752 kilowatts for two locations, where it plans to invest a total of $1.6 million. The health care giant has committed to retaining the most employees: 3,049.
A thousand kilowatts can power between 800 and 1,000 homes.
Spellman High Voltage Electronics Corp. has pledged to invest the most in its operation: $4.8 million to add 5,000 square feet of office space in Hauppauge. The manufacturer of power supplies has pledged to add 10 employees to its payroll of 379.
Gov. Andrew M. Cuomo, in announcing the power allocations, said they “enable businesses to reinvest in their operations and keep New Yorkers working."