Long Island factories win low-cost electricity for $1.3 million in expansion projects

Two local manufacturers have won low-cost electricity from the state to support equipment purchases of more than $1.3 million, Gov. Kathy Hochul announced.

American Casting and Manufacturing Corp. in Plainview has been awarded two power allocations totaling 182 kilowatts, and EB Industries LLC in East Farmingdale will receive an allocation of 86 kilowatts. One thousand kilowatts equals one megawatt, which can power about 1,000 homes.

They join nearly 220 employers in Nassau and Suffolk counties with low-cost electricity from the state Power Authority’s ReCharge NY program in return for pledges to create jobs and make investments in facilitie s.

 “By lowering our costs, that will allow us the [financial] resources to stay competitive by making investments in new efficient machines and bringing on additional manpower as the business expands,” said American Casting controller Bill Rogers.

American Casting is owned by the fourth generation of its founding family and specializes in security seals that are used in a variety of industries. Among the products in which the seals may be found are utility meters and shipping containers.

Founded in 1910, the company has two factories and a warehouse in Plainview, and a workforce of about 50 people.

“You’re going to see our seals on containers where [the customer] needs to secure the shipment and to identify whether or not it has been opened,” Rogers said in an interview.

American Casting recently installed a plastic-injection molding machine at one of its factories as part of a planned expansion project valued at $260,770. Separately, the company plans to make $575,000 in additional improvements to its operation.

The expansion project is expected to create at least three jobs. “Our ownership is proud to have multigenerational employees here and is looking to continue that trend,” Rogers said.

EB Industries, which has 38 employees, plans to make $500,000 in upgrades to its 100,000-square-foot facility at 90 Carolyn Blvd., including equipment purchases, according to Power Authority records.

The 59-year-old welding company makes ball bearings, stainless steel balls used to roll cargo in civilian and military aircraft, fuel pump covers for outboard motors, and components for drones, among others. Company officials didn’t respond to requests for comment last week and Monday.

In 2014, EB Industries won 46 kilowatts to support $900,000 in equipment purchases and improvements. That allocation has since expired, records show.

Each power allocation is for seven years. Some of the electricity is generated by dams near upstate Niagara Falls and along the St. Lawrence River.

Dennis Trainor, an authority trustee and union leader from Holbrook, said the ReCharge NY program helps Long Island’s economy by “supporting more than 71,000 jobs and stimulating more than $2 billion in investments in the region."

He said, "The power allocations awarded to EB Industries and American Casting build on New York’s efforts to support a thriving, resilient economy powered by clean energy.”

EB Industries and American Casting also are small employers, the group that authority executives have prioritized to receive the 36 megawatts of remaining ReCharge NY power.

The program began in 2012 with 910 megawatts authorized by then-Gov. Andrew M. Cuomo and the State Legislature.

“We want to be able to move the needle for these companies,” Authority CEO Justin E. Driscoll told Newsday in March, referring to small businesses. With 36 megawatts left, he said, "We’re not going to be able to power a major facility, such as a [computer] data center” that’s filled with computer servers that use a lot of electricity.

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.