New shredding facility gets power allocation
Buffalo Shredding and Recovery LLC, a newly formed subsidiary of Metalico, will receive 1,200 kilowatts of low-cost hydropower from the State Power Authority's Expansion Power Program for a new shredding facility on part of the former Bethlehem Steel site in the Town of Hamburg.
The program provides power at about half current market price in exchange for capital investments and job commitments.
Buffalo Shredding and Recovery will invest $12.5 million to develop the site of the former ArcelorMittal steel galvanizing mill on Lake Shore Road (Route 5) near Lake Avenue.
The site, vacant since 2009, will house a 4,000 horsepower metal shredder and separation system. The project will create 22 jobs.
Metalico plans to deliver scrap that was previously sent to Pittsburgh and operate rail cars to bring scrap from other sources.
Transportation of steel to and from the site is expected to generate $1.5 million a year in freight revenue.
Jamestown wins grant
A project to demolish the former Dahlstrom Metallic Door Co. factory in Jamestown and renovate a portion of the company's former administration building has received a
$1 million state grant from Empire State Development.
The City of Jamestown got the grant for the $2.2 million project that is part of the city's decade-old community development plan to revitalize its downtown business district.
Both buildings are located on a 15-acre parcel along Buffalo Street.
The demolition work is scheduled to be completed by September.
Postal Service rebuked
The U.S. Postal Service's suspension of contributions to an employee pension plan is a "willful violation of the law," says the chairman of the House House Oversight and Government Reform Committee.
The Postal Service's decision last week to halt payments to the Federal Employees Retirement System, which covers about 85 percent of career postal workers, "sets a dangerous precedent," Rep. Darrell Issa, R-Calif., said in a letter Monday to the U.S. Office of Personnel Management.
Issa's committee oversees the Postal Service, which has said it will reach its $15 billion statutory borrowing limit by Sept. 30, following loss of $8.5 billion last year.
It says it needs to suspend the pension contributions to save $800 million this year.
-- Bloomberg News