Home > About BNE > Press Room > 2010 Archive > August > Dresser-Rand investing in Olean Plant

Dresser-Rand investing in Olean plant

By Matt Glynn

Updated: August 18, 2010, 0:12 PM

Dresser-Rand will invest $9.6 million to bolster research and development at its Olean operations, Empire State Development said.

The R&D investment is expected to retain 787 jobs at the Cattaraugus County manufacturing plant and add 50 jobs by no later than the start of 2014, the state's economic development agency said.

Dennis Mullen, chairman and chief executive officer of Empire State Development, said the project was important because R&D is a major part of ESD's business development efforts, and commercialization of products often occurs where R&D is located.

The project will allow for additional work by Dresser-Rand in developing supersonic compressor technology, tied to its investment in Ramgen Power Systems LLC.

Dresser-Rand in 2008 acquired a noncontrolling interest in Ramgen, a Seattle-based compressor technology company that applies supersonic aircraft technology to ground-based air and gas compressors. Dresser-Rand thus far has invested $15 million in Ramgen, and has the option of making additional investments of $9 million through October 2012, Empire State Development said.

The company is receiving a host of incentives to help offset costs of the Olean project, related to construction and acquisition of machinery and equipment.

Empire State Development is providing a $500,000 capital grant, and Dresser-Rand will receive about $1.6 million in Empire Zone benefits. The company will also receive a $250,000 electric infrastructure grant from National Grid and Empire Zone electric rate reductions.

Dresser-Rand might also receive assistance from the New York State Energy Research and Development Authority, for implementing energy efficiency measures and buying new machinery and equipment.

The R&D investment is expected to retain 787 jobs at the Cattaraugus County manufacturing plant and add 50 jobs by no later than the start of 2014, the state's economic development agency said.

Dennis Mullen, chairman and chief executive officer of Empire State Development, said the project was important because R&D is a major part of ESD's business development efforts, and commercialization of products often occurs where R&D is located.

The project will allow for additional work by Dresser-Rand in developing supersonic compressor technology, tied to its investment in Ramgen Power Systems LLC.

Dresser-Rand in 2008 acquired a noncontrolling interest in Ramgen, a Seattle-based compressor technology company that applies supersonic aircraft technology to ground-based air and gas compressors. Dresser-Rand thus far has invested $15 million in Ramgen, and has the option of making additional investments of $9 million through October 2012, Empire State Development said.

The company is receiving a host of incentives to help offset costs of the Olean project, related to construction and acquisition of machinery and equipment.

Empire State Development is providing a $500,000 capital grant, and Dresser-Rand will receive about $1.6 million in Empire Zone benefits. The company will also receive a $250,000 electric infrastructure grant from National Grid and Empire Zone electric rate reductions.

Dresser-Rand might also receive assistance from the New York State Energy Research and Development Authority, for implementing energy efficiency measures and buying new machinery and equipment.