BAE Systems to Remain in Southern Tier

State to Provide Incentive Package for Company Significantly Damaged by Hurricane Irene

BAE Systems, a global defense, security, and aerospace company, will continue operations in the Southern Tier. With the State's support and assistance, the company will relocate from its current facility in Johnson City to another location in the region, retaining its 1,350 employees in the Southern Tier.

"Saving nearly 1,400 local jobs is a big win for the people of the Southern Tier," Governor Cuomo said.

"If BAE had been forced to relocate out of state, it would have been a significant loss for the entire region. We pledge to assist companies like BAE that have been significantly affected by natural disasters to ensure our businesses have the tools to keep New York jobs in the hands of New Yorkers."

Dan Gobel, President, BAE Systems Controls, Inc., noted, "We are grateful to Governor Cuomo, Lieutenant Governor Duffy, and the entire economic development team for the diligence with which they have supported us in the wake of the flooding. Our ability to recover our business in the Southern Tier would not have been possible without the State's involvement."

BAE System's Main Street facility sustained major flood damage in the aftermath of Hurricane Irene in September. At the height of the flooding, BAE officials report the plant was inundated with 16 million gallons of water.

A final damage estimate has not been tallied but is estimated to run in the tens of millions of dollars, with some of the plant's custom-made machinery destroyed. The company announced in October it would not be returning to the Johnson City facility and was looking within a 35 mile radius for a new facility.

Losing the company at this location would have meant a staggering impact on the local economy, families, communities and school districts as BAE is one of the largest employers in the area.

To assist BAE, the State has put together an incentive package of $40 million in job and investment-related tax credits over a five-year period, pending legislative approval enabling companies significantly affected by natural disasters – like the recent historic floods experienced in the Southern Tier – to receive disaster-related tax benefits for retaining jobs in New York State.

"When I toured BAE following the devastating flooding, I witnessed BAE's loyalty to its employees, and I am proud New York State can return that loyalty by keeping these jobs in the Southern Tier. This successful effort demonstrates our commitment to supporting the retention of jobs and full recovery of businesses damaged by the flooding," stated Lieutenant Governor Robert Duffy.

Senator Tom Libous added, "This fall's flooding had a devastating effect on some of the Southern Tier's major companies. I was pleased to work in cooperation with Governor Cuomo to provide the resources necessary to allow BAE Systems to stay in the Southern Tier and more importantly to save the jobs of almost 1,400 families."

"Keeping BAE Systems in the Southern Tier is critical to the region's economic viability and future growth. I applaud Governor Cuomo and all of the partners who came to the table to retain this company and its 1,400 employees," said Assemblywoman Donna A. Lupardo.

"Under the leadership of Governor Cuomo and Lieutenant Governor Duffy, this critical manufacturer and major employer will remain in the Southern Tier. ESD is pleased to have been able to work with the company on a business retention package that ensures it will continue to operate effectively in New York State," concluded Empire State Development President, CEO & Commissioner Kenneth Adams.

Image source: Wikipedia
Author: BAE Systems
Permission: Public Domain