October 22, 2009
GOVERNOR PATERSON ANNOUNCES GE AVIATION SYSTEMS TO REMAIN ON LONG ISLAND, SAVING JOBS
Agreement Retains High-Paying Jobs
Governor David A. Paterson and Empire State Development (ESD) today announced the award of $10 million to keep GE Aviation Systems North America Inc. in Bohemia, Long Island. The site was at risk of being closed, but through a partnership with the State of New York and multiple agencies and organizations, the offer will keep the Bohemia plant in operation. The offer will provide more than $180 million in capital and operational investments, which includes $163 million in payroll, and will retain high-paying jobs over the next 10 years.
“This deal will not only keep the operations and jobs in Long Island, it will keep the site strategically engaged and competitive,” Governor Paterson said. “In these challenging economic times, GE Aviation Systems had to take the necessary steps to protect the future of its business and chose to do that in New York State. GE is one of the major community employers on Long Island and it would have been difficult for us to lose these high-paying jobs in the technology sector.”
In addition to the grant awarded by ESD, four agencies, organizations and funding programs were tapped for the economic development program incentive. Long Island Power Authority (LIPA) offered utility delivery rate reductions. The town of Islip, the taxing authority for the location, agreed to a 10-year real property tax abatement. New York State Power Authority (NYPA) is recommending to their board of directors that GE receive an Industrial Incentive Award over the next year.
ESD Chairman and CEO designate Dennis M. Mullen said: “When we learned that the GE Aviation Systems plant was at risk of a full closure, ESD immediately began working with the Governor to formulate a proposal, contacted other State, local and private stakeholders to gain their support and made an offer within one week. Thanks to this comprehensive, multi-agency offer, we will be able to keep this site open and competitive for years to come. This project will certainly create a large return on ESD’s investment, as well as create an efficient and productive economic climate.”
Lorraine Bolsinger, President & CEO of GE Aviation Systems, said: “GE is committed to growing our business in Long Island and will invest in capital equipment, building renovations and employee training. Over the next 10 years, we are counting on the Long Island facility to grow in size and in new product development.”
U.S. Senator Charles E. Schumer said: “This deal not only ensures that over 250 high-tech jobs remain on Long Island, it will pump much needed funds into a struggling economy. During these difficult economic times, this is great news in an area that needs it. I am proud to have worked with Governor Paterson and ESD Chairman Mullen to see this agreement come to fruition and am thankful that GE stepped up to the plate to keep these jobs on Long Island.”
U.S. Senator Kirsten E. Gillibrand said: “Even in the face of difficult economic times, we are still taking the steps needed to keep businesses on Long Island. Keeping GE Aviation Systems North America, Inc. on Long Island will help our efforts to rebuild our economy. I will continue working with Governor Paterson, Senator Schumer, and the entire Congressional Delegation to make sure we have the resources we need to keep businesses in New York, attract new businesses and get our economy back on track for the long term.”
Congressman Steve Israel said: “The Governor's success with GE Aviation Systems will keep jobs on Long Island during a difficult time. Now more than ever we remain focused on keeping and creating jobs on Long Island and across New York”
Senator Brian X. Foley said: “As we try to turn the corner on this economic slowdown, it is absolutely critical that we create and retain as many jobs as possible. I am very pleased to partner with Governor David Paterson, the Empire State Development Corporation and agencies and locals governments throughout the state to help stimulate economic development. The well-paying jobs saved as a result of today’s announcement will be crucial for working-families right here Long Island and help sustain our local economy.”
Assemblywoman Ginny Fields said: “A concerned constituent brought to my attention that GE Aviation was considering moving to another state, forcing over 250 individuals into unemployment. I was able to contact Empire State Development, which immediately responded by utilizing program incentives and recruiting other agencies to offer assistance in order to keep GE’s doors open and save jobs on Long Island. I appreciate the Governor’s efforts and the great work of ESD. Long Island’s economy is dependent upon keeping jobs on Long Island and because of their vigilance, they were successful in obtaining that goal.”
President and Chief Executive Officer of the New York State Power Authority Richard M. Kessel said: “Under Governor Paterson’s leadership, the New York Power Authority has made it a priority to work in partnership with businesses to lower electricity costs, especially during this difficult economic time when companies are contending with reduced product demand and struggling to maintain their operations. We are proud to provide this incentive award to GE Aviation, a critical Long Island employer, that will help stabilize the company’s energy expenses while keeping jobs in the community.”
President and CEO of the Long Island Power Authority Kevin S. Law said: “LIPA is proud to play a role in assisting Governor Paterson’s efforts to keep GE Aviation here on Long Island. In these tough economic times, it is imperative that we make every effort to support and retain such high-technology firms, which are vital to creating new well-paying jobs and strengthening and growing Long Island’s economy.”
Town of Islip Supervisor Phil Nolan said: “In this tough economy, it is especially critical for state and local government to pull together to retain companies that are engaged in high value-added manufacturing such as defense-related electronics because of the quality of those jobs and the ripple effect they have on the regional economy.”
GE Aviation Systems is a leading global provider of electrical power systems, avionics, actuation and landing gear, aerostructures and propeller systems to the builders and operators of military and civil aircraft, from large transports to fighters, UAVs to armored vehicles, and from helicopters to regional and business jets. GE Aviation Systems is headquartered in Cincinnati, Ohio and employs 9,000 people at manufacturing, repair and overhaul facilities around the world.
