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Silicon manufacturer Globe Specialty Metals Inc. (NASDAQ: GSM) has reopened its Niagara Falls plant, investing $27 million and creating 138 jobs as part of the first phase of a $60 million economic development project.

 

The company has restarted its two furnaces and has upgraded the equipment used to produce approximately 30,000 tons of metallurgical grade silicon each year.

New York Governor David A. Paterson made the announcement last week at Globe's Niagara Falls plant.

 

Under the Governor's leadership, Empire State Development (ESD) and the New York Power Authority (NYPA) created an economic development package in 2008 that provides Globe with 40 megawatts (MW) of hydropower over five years with a potential five-year expansion and up to $25 million in Empire Zone benefits for up to 10 years, subject to achieving specified employment and investment targets. As part of the agreement, Globe will allow ESD to offer solar cell manufacturers up to 25% of Globe's upgraded metallurgical grade silicon (UMG-Si) production at a reduced price as an incentive to locate to New York State. This agreement is designed to fuel the development of the clean energy industry in Western New York, bringing additional jobs and capital investment and providing a foundation for New York to become a leader in the solar use and production industry.

 

Phase II of Globe's project calls for construction of a new 100,000-square-foot, $35 million facility in Niagara Falls to convert Globe's metallurgical grade silicon into 4,000 tons of upgraded metallurgical grade silicon each year--enough to produce 500MW of solar power.

 

The project is expected to create a total of 500 jobs in Niagara Falls.

 

Earlier this year, Oregon-based SpectraWatt Inc., a manufacturer and supplier of solar cells, established its first factory at the Hudson Valley Research Park in Hopewell Junction in Dutchess County after receiving an option to purchase 200 metric tons of Globe's silicon per year. As part of that agreement, SpectraWatt will hire 161 employees and invest over $80 million in its new facility. New York State's silicon incentive is the only known government incentive in the United States offering silicon to solar cell manufacturers.

 

Globe Specialty Metals Inc. is among the world's largest producers of silicon metal and silicon-based specialty alloys, which are critical ingredients in a host of industrial and consumer products with growing markets. Customers include major silicone chemical, aluminum and steel manufacturers, producers of photovoltaic solar cells and computer chips, the auto industry, ductile iron foundries and concrete producers.