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The Erie County Industrial Development Agency will consider nearly $160,000 in property and sales tax breaks for Cheektowaga-based API Heat Transfer to build a two-story addition to its current facility that will become its global headquarters following a merger.

The agency’s Policy Committee approved a proposal Monday for $63,000 in property tax savings and $96,000 in sales tax savings for the project at 2777 Walden Ave. in Cheektowaga. That application will now go before the full board at its Nov. 18 meeting.

API, a major global provider of radiators and other heat transfer equipment, plans to spend $1.73 million to construct, renovate and equip a 6,000-square-foot addition to its building. It will also renovate 3,900 square feet of research and development space. It expects to add about six jobs locally, while retaining 287 but will also invest in new testing equipment for its thermal laboratory.

The company, which was acquired in 2012 by private-equity firm Wellspring Capital Management, was combined with ThermaSys, another heat transfer company owned by Wellspring and based in Montgomery, Ala. After some discussion and consideration of alternatives such as New York City, Atlanta or Chicago, the merged company’s leadership decided to close its Alabama corporate offices and base its global headquarters in Cheektowaga.