Alita USA Holdings, a Dubai-based start-up company, plans to build a $101.85 million steel pipe mill in Buffalo, New York, to manufacture tubular goods for the oil and gas industry. The firm anticipates hiring 172 workers at its plant that will be located in a Brownfield site in South Buffalo.
According to state records, the company proposes to construct a 324,000-square-foot pipe mill along with a 16,000-square-foot facility dedicated to a lab, storage and an office area on Rittling Boulevard in Buffalo.
Gov. Andrew M. Cuomo said the Western New York Power Proceeds Allocation Board recommended $2 million in funding to Alita USA Holdings Inc. to locate in the region.
"Western New York is a strong region for manufacturing with a highly-educated workforce and proximity to market, and we are proud that companies like Alita USA are looking to Buffalo and the entire region to grow their businesses," the Governor said. Alita’s project is contingent upon approvals from the Erie County Industrial Development Agency, final site acquisition and compliance with applicable legal requirements.
“We are pleased to announce that the Buffalo Niagara region is expected to be home to Alita USA’s first U.S. OCTG manufacturing facility,” said Alita USA President and CEO Ali Hosseini. “Buffalo was once the heart of steel manufacturing in the U.S. and most of those factors, such as logistics, infrastructure and availability of a strong and talented workforce, that made the city ideal for manufacturing remain true today. We would like to thank the State of New York, Erie County and Buffalo Niagara Enterprise for the tremendous support to bring this project to New York. With their support we are confident that Alita USA will be the most successful and competitive manufacturing facility for the production of high grade OCTG in the U.S.”
New York State offered the company performance-based incentives, including up to $6.4 million in Excelsior Jobs Program tax credits for the company’s investment in the State and creation of jobs. In addition, the NYPA Trustees are expected to consider a low-cost power allocation to Alita in support of the pipe mill, and the Erie County IDA is offering a $2 million “forgivable loan” toward site development costs.
“Today’s recommendation by the WNYPPAB underscores the importance of this valuable incentive in bringing new investment and job creation to our community,” said BNE President and CEO Thomas Kucharski. “The board’s recognition of the value and impact this project could have in Buffalo Niagara is one more positive development that I hope will ensure this project will become a win for our region.”