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Dresser-Rand ups Olean Investment

Wednesday, August 18, 2010

Business First of Buffalo
 
A $9.6 million investment will be made at Dresser-Rand’s Olean operation to increase the research and development capacity at the facility.

Houston-based Dresser-Rand (NYSE: DRC) is in the process of developing cutting-edge supersonic compressor technology, as part of the company’s investment in Ramgen Power Systems LLC, continuing work that began in 2008. At that time, Dresser-Rand entered into an agreement to acquire a non-controlling interest in Ramgen Power, a privately held Seattle-based compressor technology company that applies proven supersonic aircraft technology to ground-based air and gas compressors.

To date, Dresser-Rand has made investments in Ramgen totaling $15 million. The agreement with Ramgen allows Dresser-Rand to make additional optional investments of $9 million through October 2012.

As a result of the new investment, officials said 787 jobs will be retained at the Olean manufacturing plant, with an additional 50 new jobs being created.

Empire State Development will contribute a $500,000 capital grant. Dresser-Rand will also receive approximately $1.6 million in Empire Zone benefits, a $250,000 electric infrastructure grant from National Grid through its Capital Investment Incentive Program, as well as Empire Zone electric rate reductions. Additional aid from the New York State Energy Research and Development Authority also may be available for implementing energy efficiency measures in the R&D facility and purchase of new equipment.

Dresser-Rand is a leading manufacturer of industrial rotating equipment for the oil and gas industry. The company has three operations in the Southern Tier — Olean, Painted Post and Wellsville — and employs about 2,000 workers.