The Genesee County Economic Development Center (GCEDC) board of directors advanced an initial resolution for Graham Corporation’s proposed new commercial production facility at the agency’s board meeting on Thursday, December 7th, 2023.

Graham Corporation is a global leader in the design and manufacture of mission critical fluid, power, heat transfer, and vacuum technologies for the defense, space, energy, and process industries. The project will add to the company’s existing location in the city of Batavia where it has been headquartered since 1942.

The $13.9 million proposed investment includes the construction of an 18,900 sq. ft. expansion intended to reduce design and manufacturing costs and improve shipping capabilities for the organization’s US defense sector. The project will create 24 new full-time equivalent (FTE) positions while retaining 340 FTEs.

Graham Corporation is seeking sales tax exemptions estimated at $206,400 and a property tax abatement estimated at $197,826 based on an incremental increase in assessed value totaling the proposed financial agreements to approximately $404,226. For every $1 of public benefit, Graham is investing $68 into the local economy resulting in a local economic impact of $19.44 million in future wages and tax revenue.

A public hearing for the proposed project agreements will be scheduled in the city of Batavia.

A reader submitted this photo and video of a large load leaving the Graham Corp. facility in Batavia today and heading down Clinton Street.

The Batavian attempted today to get more information about the shipment from a contact at Graham but did not get a response.

More than 200 local high school students, including students from Elba High School at Graham Manufacturing, toured local businesses yesterday for National Manufacturing Day, sponsored locally by the Genesee County Business/Education Alliance.

At Graham, Elba students learned about what the company does and how it does it during a presentation in the company's cafeteria. The students then toured some of the production buildings.

Other companies participating were U.S. Gypsum, Amanda Tool, Oxbo, Orcon, Liberty Pumps, and Chassix.

Please be advised that the two projects that came before the Genesee County Economic Development Center Board for incentives at the Sept. 5 board meeting passed. The details of the projects are below. Please note that the project summary for Yancey's Fancy has been updated with further details of the project. The board approved an initial resolution which directs the GCEDC to schedule a public hearing on the Yancey's Fancy project and related incentives. As soon as the public hearing for Yancey's is scheduled we will send you the details. Please do not hesitate to contact me with any questions or concerns.

Graham Corporation Expansion
Discussion: Proposed sales tax and property tax abatement.

Graham Corporation would like to renovate the "old" plant area, located at the corner of Harvester Avenue and Howard Street in the City of Batavia. A new bay will be constructed (12,439 square feet) that will enclose the area between two manufacturing bays located facing Harvester Avenue along with renovations of office and manufacturing areas. In addition, a new building (3,800 square feet) will be constructed on the 20 Florence Street campus. This new building will be used for X-ray inspections of welds done during the fabrication process. Graham currently has 311 full-time equivalent (FTE) employees and anticipates adding 30 more over three years after the certificate of occupancy is obtained for these renovations. At the Aug. 1 board meeting an initial resolution was approved to schedule a public hearing. A public hearing was held on Aug. 21 to solicit public comments on the project as the total incentive amount is more than $100,000. No members of the public attended the hearing.

Board Action Request: Approval of final resolution to approve the incentives for the project. The application for the expansion project includes an estimated sales tax exemption of $240,000 and estimated property tax abatement on the incremental increase in assessed value of $243,396.

Historical Look: The last expansion project that Graham undertook and the GCEDC assisted was in 2011. At the time Graham had 278 FTEs and pledged 30 new jobs in three years for a total of 308 FTEs. According to its 2013 application the company exceeded its employment goals and plans to keep growing.

Yancey’s Fancy Project -- *Updated Summary
Discussion: Proposed sales tax and mortgage tax exemptions and property tax abatement.

Yancey's Fancy has updated its project specifications since submission of its original application for incentives. The original application was received by the GCEDC in April. According to the original application, Yancey’s was planning an 112,000-square-foot expansion at its existing facility, 857 Main Road in Corfu. After moving forward with planning and permitting for the expansion, the company has decided to build a new facility within the Buffalo East Technology Park (BETP) located in Pembroke. Yancey’s Fancy would like to purchase approximately 12 acres within the BETP, and build a 112,000-square-foot facility. The capital investment is estimated to be $18.2 million.

The company plans to keep its artisan cheese operations and retail store in the current location (857 Main Road), and to undertake an expansion at this location as well. The second part of the project will include the addition of 3,500 square feet at the 857 Main Road location where they will install a new reverse-osmosis system. The instillation of a reverse-osmosis system will allow whey produced during the cheese-making process to be dried and sold. Currently, whey is transported by local farmers at a cost to Yancey’s. By utilizing reverse-osmosis technology, it is possible to concentrate the solid content enough to sell whey to processors and animal feed operations. Recent technological advances also allow the water removed from the whey to be pumped back into plant operations. These advances, as well as the expansion of the town and village sewer system, have made the reverse-osmosis project a viable opportunity in the overall growth strategy that Yancey’s Fancy in undertaking. The capital investment of this project is estimated to be $2.5 million.

The total capital investment for Yancey’s project is estimated at $20.7 million. The company currently has 108 full-time equivalent (FTE) employees and expects to add 50 more over three years after the certificate of occupancy is obtained for this new facility. Due to the changes in the project, a new public hearing will be held to solicit public comment on the incentives sought by the company, as they are more than $100,000 in savings.

Board Action Request: Approval of an initial resolution to set a public hearing for the Yancey’s Fancy project. The estimated sales tax exemption is valued at $638,608, and the estimated mortgage tax exemption is valued at $233,388. The new building and land located within the Buffalo East Technology Park will have an estimated property tax savings of $686,314, and the incremental increase in assessed value that will apply to the additional square footage at the 857 Main Road location will have an estimated property tax savings of $49,022. The total estimated property tax exemption is valued at $735,336.

Yesterday, Graham announced the acquisition of Michigan-based Energy Steel for $18 million.

The newly acquired company, with 52 employees, is expected to remain in Michigan and no layoffs are expected.

Graham tapped into its $71 million cash reserve to make the purchase, according to the Buffalo News.

Pay for CEO James Lines jumps 3.8 per cent, from $265,000 to $275,000.

Three percent increases were given to Jeff Glajch, vice president–finance and administration and chief financial officer, to $216,000; Alan Smith, vice president of operations, to $183,536; and, Jennifer Condame, controller and chief accounting officer, to $132,613.

This week Graham announced a quarterly dividend of two cents and another $6 millions in orders.

The orders have come from multiple sources around the world and include work for steam surface condensers installed in the U.S. and Asia.

The first order will be sent to a municipal waste-to-energy project in the U.S.

Graham will construct four steam surface condensers for Northrop Grumman Shipbuilding, which is building a second carrier in the Gerald R. Ford class.

The carrier, designated CVN 79, has not yet been named.

Revenue from the contract award will hit the Graham books in in fiscal 2012, which begins April 1, 2011, and will continue into fiscal 2014.

Graham manufactures equipment critical oil refineries and the petrochemical industry. The  new contracts are for two refineries in the Middle East and a fertilizer project in Asia.

James R. Lines, Graham`s President and Chief Executive Officer, commented, "It is encouraging to see increased purchasing activity in our international markets, particularly in Asia and the Middle East, where we expected the recovery from the global recession to begin. We are also seeing renewed quoting activity in South America. However, we do not believe our markets are in full recovery, and we continue to expect non-uniform order levels for several more quarters."

Less than a month ago, Graham laid off 15 local workers.

The orders follow quickly another $5 million in sales for the company's ejector systems, according to the Democrat and Chronicle.

CEO James Lines said:

"While we expect the global recession and tight credit markets to continue to affect the pace and timing of new order placement ... we view the potential bookings pipeline favorably," Lines said. "We believe the long-term fundamentals supporting increased global demand for energy are solid."