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March 15, 2016 02:00 AM

Tulip grows in Niagara Falls

Michael Lauzon
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    Development officials tried hard and succeeded in keeping a custom injection molder in Niagara Falls, N.Y.

    Tulip Corp. broke ground March 10 on a new facility adjacent to its current one and expects to complete the building by the end of the year. The project represents an investment of $11.7 million, $10.3 million of which has been committed by Tulip. The price includes a new 70,000-square-foot facility and equipment, Tulip President and CEO Craig Kellogg said in a phone interview. The project will save about 84 jobs and create 10 new positions.

    “The old plant outlived its useful life,” Kellogg explained. “We need a more modern and efficient facility to better meet customer expectations.”

    The existing building in Niagara Falls was built in 1904 and was once home to Prestolite battery operations. Tulip bought land adjacent to the old factory that has been cleaned to remove residual pollution on the site.

    Tulip injection molds polypropylene battery cases in Niagara Falls as well as plastic components for a variety of other industries. It operates 20 injection presses in the 500 to 1,000 ton range. New presses will replace some of the older ones in Niagara Falls. Kellogg said plastic and metal battery components account for 70 percent or more of its sales. Its headquarters is in Milwaukee, where it manages another molding operation.

    Tulip had been looking for a few years for a new plant location to replace its Niagara Falls operation. Last summer the Niagara County Industrial Development Agency approved tax breaks for a proposal to build next door, but the company withheld its final decision until recently after other local agencies also offered funds to stay in Niagara Falls.

    The New York Power Authority awarded $1 million to subsidize the project. Empire State Development will provide $550,000 in tax credits and capital grants. NCIDA will award $1.9 million in payment-in-lieu-of-taxes breaks on sales and mortgage taxes over 15 years. As well, OSC-Brightfields Corp. will receive $1.6 million for leading a major remediation of the site that ultimately cost about $17 million. OSC-Brightfield is in charge of building the new facility, which it will lease to Tulip.

    Tulip also owned an operation in City of Industry, Calif., but moved it to Milwaukee a few years ago. The company is owned by Saugatuck Capital Corp. of Wilton, Conn.

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