Fiberboard Plant Looks to Build in Western NY

Ligna Recycling Technologies is planning to hire 64 workers for its planned fiberboard manufacturing operation in Lackawanna, N.Y., with a national search in the United States for a manager and superintendent.

Steve I. Simon of Toronto, the company's president, said Tuesday that the plan is to hire all but two of the employees from the Buffalo area.

Ligna Technologies and seven other Canadian investors are shareholders in the Lackawanna project, Simon said.

Simon said he intended to have soil tests done before the purchase was concluded, but he is glad to know that Lackawanna commissioned tests in 1994 that cleared the land for construction.

Simon said negotiations for waste-wood supply for the operation were conducted with Lake Front Recycling and other firms last year, but a contract with Lake Front was never signed.

"As soon as we put our financial structure together, we are going to negotiate with local wood-waste suppliers in the Buffalo area," he said.

Ligna Recycling will receive $27 million in financing through Erie County Industrial Development Agency bonding and, because of its location in the Lackawanna Economic Development Zone, will be eligible for tax breaks and other incentives.

Creating the Ligna complex is projected to cost about $32 million. Ligna will pay the city $287,500 for the location. It includes two sites, 6 acres where Ligna previously was identified as purchaser, and another 5.5 acres approved by the Lackawanna City Council on Monday, across the street in North Steelawanna Avenue Industrial Park. Planning Board approval is required before construction can begin. Buffalo News