Officials: Amphenol to stay in Sidney

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November 30, 2011

BY JOE MAHONEY Staff Writer The Daily Star Wed Nov 30, 2011, 02:30 AM EST

Amphenol Aerospace & Industrial, whose Delaware County plant was damaged by late summer storms, has agreed to keep its operations in the village of Sidney. It will relocate into a new plant that will be constructed near the present one, Sidney Mayor Andrew Matviak and a group of local and state officials announced Tuesday.

The decision by Amphenol -- which had been considering leaving the region -- spares about 1,000 jobs in the region.

"This is outstanding news," Matviak told The Daily Star. "We want to thank Amphenol and its workers for making a long-term commitment to the village of Sidney."

Matviak said Amphenol officials were convinced to stay after the Delaware County Industrial Development Agency and the Empire State Development Corp., a state authority, put together an incentive package that will allow it to relocate nearby at a site where its operations would not be threatened by future flooding.

The new plant will go on a tract west of Kmart off Delaware Avenue, the mayor said.

In Albany, the Cuomo administration said Amphenol will receive a state business assistance and retention package worth about $20 million.

The funding will be directed to the Delaware County Industrial Development Agency. The money will assist Amphenol in paying for the costs for acquisition of the new site, the construction of the building, extension of a natural gas line to both the existing facility and the new plant and construction of a levee around the existing facility located at 40-60 Delaware Ave., state officials said.

Funding the incentive package are Empire State Development, Empire State New Market Corp., and the New York State Homes and Community Renewal Office of Community Renewal, officials said.

Gary Anderson, a senior vice president for Amphenol Aerospace & Industrial Group, said: "Thanks to the village, county, state and federal officials and agencies, Amphenol will continue its presence of more than 85 years in Sidney. Thanks also go out to our employees, our suppliers and sister companies for returning operations capability to 100 percent in record time in support of our customers."

He added: "The new factory, in a high and dry location, represents the best solution for our customers by both eliminating the flood risk and preserving decades of industry knowledge and expertise resident in our management team and employees."

In a statement, Gov. Andrew Cuomo said, "The summer storms took a terrible toll on New Yorkers as well as the businesses that employ them. This should send a message to companies that New York supports its businesses in good times and bad."

Officials said the Delaware County IDA will also help with the construction of the levee at the existing factory as well as the new plant in Sidney.

Amphenol manufactures interconnect products for the military, commercial aerospace and industrial markets.

Matviak said several local elected officials -- Assemblyman Peter Lopez, R-Schoharie County; Sen. Jon J. Bonacic, R-Mount Hope; and U.S. Rep. Chris Gibson, R-Kinderhook -- also worked hard to keep Amphenol in Sidney.

"The Amphenol people told us: 'The bottom line is we want to be dry,'" Matviak said, noting a series of flood mitigation measures in recent years failed to sufficient protect Amphenol from the flood waters that battered the plant in late summer.

Amphenol reported in September that its Sidney plant sustained between $20 million and $35 million in damage from Tropical Storm Lee and Hurricane Irene.

The recent flooding was not the first time the Sidney plant sustained heavy damage as a result of severe weather. It was also battered by flooding in 2006.

Gibson said: "Tuesday's announcement by Amphenol that they are staying in Delaware County is a perfect example of an effective partnership between local, state and federal governments."

"The storms which caused Amphenol's damage were horrible to say the least, but the Amphenol workforce is strong, and that matters most," Bonacic said.