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Business First

COBEY INC. CELEBRATES FIRM’S MOVE TO BUFFALO
thartley@bizjoumals.com

Cobey Inc., a supplier to the petrochemical and compressor industries, celebrated the grand opening of its new Buffalo production facility on March 28.

The 90,000-square-foot building was completed and occupied late last year.

The $10 million project enabled the private company to consolidate its Blasdell manufacturing operation and Clarence engineering facility into one location in Buffalo Lakeside Commerce Park, One Ship Canal Parkway.

Cobey designs and makes specialty piping systems and compressor packages.

The company eventually plans to expand its workforce to 75 by creating 25 jobs. Cobey announced in the fall of 2005 that it would become the second anchor tenant at Buffalo Urban Development Corp’s new 80 acre mixed-use commerce park.

The first tenant in the city-owned park, CertainTeed, leases 25 acres and opened a 270,OOO-square-foot manufacturing facility in January 2005. The company makes roofing and siding products.

"However, the order that put us on the map was in 1988 for three 660 GPM API618 oil systems for a local engine manufacturer," Castle says.

Among those assisting Cobey with its recent relocation, which is in Buffalo's Empire Zone, were Buffalo Urban Development Corp., the Erie County Industrial Development Agency, Empire State Development, and Buffalo Niagara Enterprise.

Cobey received incentives from the state, city and county. The Erie County IDA approved $10 million in bond financing.

The Buffalo News

Cobey anchors industrial park
Published on March 29, 2007
Author: Matt Glynn - NEWS BUSINESS REPORTER
© The Buffalo News Inc.

Inside Cobey Inc.'s vast plant, workers are finishing projects destined to operate in the frigid cold of Canada and the searing heat of the Middle East.

The company's mixture of engineering and manufacturing expertise has come together in an unlikely place: on a former industrial site in South Buffalo.

Cobey on Wednesday held a grand opening for its headquarters and plant in Buffalo Lakeside Commerce Park. The company designs and makes specialized systems and compressor packages used by the petrochemical industry. Cobey, whose plant was completed late last year, is the park's second tenant. CertainTeed, which makes vinyl fence railing and decking, has operated there since early 2005.

"We call them our anchors now," said Peter Cammarata, director of urban development for the Erie County Industrial Development Agency and a key figure in advancing plans for the park.

The business park has resuscitated a former Hanna Furnace site east of Route 5, opening up more land for the city to use to compete for projects.

A third neighbor could soon join Cobey and CertainTeed. Cammarata said economic development officials are in negotiations with a prospect from whom they received a letter of intent. The unidentified prospect would take the 10-acre site that Delaco Steel Corp. planned to use until it opted for a Town of Tonawanda complex instead.

Cobey was searching for a new home with more space, where the company could bring its operations in Clarence and Blasdell under one roof, said John Obey, Cobey's president. He co-founded the company in 1987 with Robert Castle, the vice president.

The opportunity for Cobey to qualify for "brownfield" tax credits, as well as Empire Zone incentives, made Buffalo Lakeside Commerce Park appealing, Obey said. Staying in the region also ensured the company's work force would remain intact.

"If we had moved out of state," Obey said, "we would have lost probably everybody."

Instead, the company has grown, from 56 employees to 71 in one year's time. Obey said Cobey wants to hire even more workers, for positions like welders and engineers, but has had trouble finding qualified people.

Cobey won't disclose the names of its customers, but it does business with some of the largest oil producers and refiners in the world. Its work is highly specialized, designing and assembling systems to suit its customers' needs. Computer models help determine which parts its needs for a job.

The new plant gives Cobey more space for its operations, as well as bigger cranes to work on its projects, said Eric McKendry, Cobey's sales and marketing manager. "The bigger plant has really afforded us the ability to handle the larger equipment."

What emerges from the Buffalo plant often needs to be able to withstand harsh conditions, from the heat of the desert, to minus-56 degrees Farenheit conditions in Alberta, to the unpredictable waters where offshore oil rigs operate.

Development of Lakeside Commerce Park is still unfolding. Recent acquisitions are adding 130 acres to its size. The deals give the Buffalo Urban Development Corp., an ECIDA affiliate, control of a 275-acre site, excluding land bought by CertainTeed and Cobey and land that will be set aside for a park.

"I think this is a good sign," said South Council Member Michael P. Kearns, referring to Cobey's arrival. "We're growing on the waterfront. This is part of waterfront development."

Additional parcels in the industrial park will be opened up for use once of one of the roads, Ship Canal Parkway, is extended, Cammarata said.

The original vision for the park was to attract companies needing five to 10 acres for their buildings, Cammarata said. But CertainTeed and Cobey came in with even larger needs, taking a combined 37 acres.

Cammarata said he is encouraged by the opportunity the city has to vie for projects with available land, which had been hard to come by.

"It's definitely something new for the City of Buffalo, that is for sure," he said.

E-mail: mglynn@buffnews.com