New York’s development professionals bring expertise, experience, best practices, and the resources of the state and their communities to every project they assist. These case studies are a sampling of those projects.
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SKF Aeroengine North America /Heat Treat Building
In 2008, SKF Aeroengine, a division of the SKF Group in Sweden that is headquartered in Jamestown, NY, proposed a new world class, heat treat facility for its North American operations. SKF Aeroengine is a world leading manufacturer of complex bearing assemblies for commercial and military jet aircraft and helicopters
Project Need (problem)
SKF Aeorengine was tasked by its Swedish ownership to find the best location for a new world class, state of the art heat treat facility in North America. The heat treat process, preparing metals to be used for bearings and bearing assemblies in the aerospace industry, is the most important process in bearing manufacturing. The location of this new facility would determine where the bulk of the Aeroengine manufacturing will be done for the next 20-30 years. The Falconer, NY, facility employs over 600 highly paid staff and machinists with a payroll of over $75,000,000. Falconer was in competition with sites in South Carolina and Virginia.
Project Solution
The County of Chautauqua Industrial Development Agency (CCIDA) worked with Empire State Development and both our NYS Senator and NYS Assemblyman to fashion a strong package of incentives. The CCIDA did a Tax Lease and PILOT to abate increases in property taxes, sales tax on construction materials, and mortgage filing tax. The CCIDA also made a $1,000,000, 20 year loan at 4% to the developer of the heat treat building. NYS offered a full incentive package including tax credits and a grant. Both the NYS Senate and NYS Assembly made outright grants for the project. The first phase of the project – a 66,000 square foot heat treat facility – is now completed next to the main Falconer plant. They will also be constructing a new corporate headquarters building and a R&D building next to the Heat Treat plant in the second phase of the project.
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