New York State Power Agency Signs Deal with Proposed Steel Mill

According to the announcement, New York state was competing with several other states, as well as Mexico, on the proposed $200 million manufacturing plant.

Steel Development will receive an allocation of about 18.7 megawatts of hydropower from the Power Authority’s Niagara Power Project.

Under New York State law, businesses benefiting from the hydropower must be within a 30-mile radius of the Niagara project. Steel Development, whose allocation will come from NYPA’s Replacement Power Program, will work with local and State economic development agencies and other officials in deciding where to build the steel plant.

When the economic package is complete, Steel Development will build a steel rebar plant using scrap steel. The steel plant is expected to be complete by the first half of 2011.

Dennis M. Mullen, Empire State Development chairman and CEO designate, said: "Steel Development’s selection of Western New York for its steel recycling plant validates the substantial efforts taken under Governor Paterson’s direction to partner with the company to bring it to the region.

"We recognize the tremendous direct and indirect benefits, including demand for goods and services, the steel recycling facility and its 200-employee work force would have on Western New York’s economy. We look forward to continuing to work with Steel Development in their efforts to secure a location and begin operations in Western New York."