ALBANY, N.Y.—New York Gov. Andrew Cuomo has announced a low-cost allocation of 1.5 megawatts of hydropower to Sumitomo Rubber U.S.A. to support an expansion at Sumitomo's tire manufacturing facility in Tonawanda, N.Y.
The New York Power Authority Board of Trustees approved the allocation at its May 2 meeting, according to a press release from Cuomo's office.
According to the release, the hydropower allocation allows Sumitomo to go ahead with a two-phase expansion project.
The project includes the addition of 100,000 square feet of new production space at Tonawanda and the doubling of daily passenger tire production from 5,000 to 10,000 tires per day, the release said.
The power allocation supports $87 million in capital investment and 30 new jobs at the Sumitomo plant, it said.
"By providing clean, inexpensive Niagara hydropower to manufacturers in western New York, we drive job growth and economic development throughout the region," Cuomo said in the release.
A spokeswoman for the New York Power Authority Board said Sumitomo applied for the hydropower allocation in April 2017. The expansion is scheduled to be completed within two years, she said.
Officials of Sumitomo could not be reached for comment.