LOCKPORT – Diversified Manufacturing, which has begun a nearly $5 million expansion of its metal fabricating plant, was approved for assistance from two Niagara County agencies last week.
The Niagara County Development Corp., an arm of the county Industrial Development Agency, approved a $400,000, seven-year loan to the company, located on Ohio Street in Lockport.
And Empower Niagara, the county agency created to assist businesses with low-cost power allocations from the Niagara Power Project, recommended a three-year, 200-kilowatt allocation.
In April, the IDA granted Diversified a 15-year tax abatement on the 45,000-square-foot addition, which is scheduled to open in November.
In May, the New York Power Authority granted the company $500,000 in a vote by the Western New York Power Proceeds Allocation Board.
Diversified has merged with IPAC Inc., an Amherst business that produces similar products. Both are owned by Brian F. Costello, who could not be reached for comment Friday.
The enlargement of the Lockport plant will enable it to absorb 46 jobs being shifted from the Amherst site. The Lockport plant has a workforce of about 100.
“This allocation will strengthen the business and keep those jobs in Lockport, as well as attracting more jobs,” said Michael A. Casale, the county’s deputy commissioner for business development.
According to the loan application to the development agency, Diversified is investing $800,000 of its own money in the project and is taking on a $2.6 million loan from M&T Bank.
The company has 30 employees there now.
The power allocations are recommended to the County Legislature, which is expected to vote on them Aug. 6, if they clear two Legislature committees during July.