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Local

Incentives help fuel Sumitomo's expansion and job creation

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Sumitomo Rubber USA
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A local manufacturer is moving ahead with a multi-million dollar expansion. The project - which is being driven in part by state and local incentives - is expected to create dozens of new jobs

   
Sumitomo Rubber USA - based in the Town of Tonawanda - will be investing $87 million in the former Goodyear-Dunlop plant along Sheridan Drive. The expansion's expected to create nearly three dozen new jobs.
    
"These are the types of jobs that we need here in Western New York and the Town of Tonawanda. They're not minimum wage jobs. They're good jobs," said Tonawanda Supervisor, Joseph Emminger, who recently met with Sumitomo executives.

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Credit Town of Tonawanda
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Town of Tonawanda Supervisor Joseph Emminger

"And they're not only talking about this expansion they're looking perhaps hopefully to do further expansion to their plant going down the road - which will mean more jobs to our area," Emminger said.

The plant makes tires for cars, trucks and motorcycles. And the investment and expansion will double production from 5,000 to 10,000 tires a day. In exchange, the state is increasing Sumitomo's current allocation of low-cost Niagara hydropower by about 12 percent. And the Erie County Industrial Development Agency is providing nearly a $1 million in sales and property tax breaks. Emminger says it's worth it.
    
"In this case you have an existing facility so they're paying their fair share now. And the part that's going to be going on to the PILOT [Payment in Lieu of Taxes] will be the addition," Emminger said.

Company officials were unavailable to comment.