Century-Old Erie County Manufacturer Expands To Increase Capacity by 50 Percent, Directly Supporting Nearly 220 Jobs
Project Supported by $4.5 Million in NYPA Funding and Up to Nearly $5 Million in Performance Based Tax Credits through ESD and DEC Programs
Governor Kathy Hochul announced that Niagara Power Transformer, a Buffalo manufacturer of transformers essential to the operation and modernization of the electric grid, has broken ground on a more than $71 million expansion that will increase its production capacity by 50 percent, support nearly 220 jobs, and strengthen the domestic supply of critical grid equipment.
With an ever-aging grid, having these transformers produced in Western New York will support a resilient and energy-independent State. The project reinforces New York’s energy supply chain at a moment of growing demand and continued economic momentum across the State.
“As New York advances its clean energy economy, strengthening our grid and expanding domestic transformer production are essential to meeting the state’s growing energy needs,” Governor Hochul said. “Niagara Power Transformer’s expansion helps ease a critical supply‑chain bottleneck, delivers good-paying jobs to Western New York and supports the industry that keeps the lights on for New Yorkers while ensuring we have enough power to help keep energy costs down.”
Niagara Power Transformer President Chris Kraft said, “Niagara Power Transformer has been manufacturing transformers in Western New York for more than a century, and we are proud to continue being a pillar of this community with the support of Governor Hochul, New York Power Authority and our state and local partners. The Niagara Power 50 Initiative represents the largest investment in our company’s history and will allow us to increase transformer production by 50 percent. As electricity demand continues to grow, driven by the resurgence of American manufacturing and electrification, the need for reliable power infrastructure has never been greater. This investment will help our customers modernize and expand the grid to meet that demand.”
The firm manufactures large liquid-filled power and specialty transformers, which are devices used to change the voltage level of electricity as it moves through the grid. Demand for transformers has increased significantly as utilities modernize and harden the electric grid, connect new generation and expand infrastructure to serve growing electricity demand from economic anchors and job creators. At the same time, limited domestic manufacturing capacity and extended lead times have made transformers a critical supply chain constraint for grid investment.
Amid these trends, the firm’s project — as part of its Niagara Power 50 Initiative — will expand its existing campus by 96,000 square feet, increasing its production capacity. The expansion will introduce specialized manufacturing equipment; expand material handling and storage capacities; and upgrade site utilities and incorporate new engineering and administrative spaces. The project will support the retention of 146 jobs and create 73 new full-time positions at the firm, including 57 IBEW union jobs.
Niagara Power Transformer received significant strategic support from New York State to advance the project, including $4.5 million from the New York Power Authority’s Western New York Power Proceeds program. Empire State Development awarded the firm up to $3.4 million in performance-based Excelsior Jobs Program tax credits. The site is participating in the New York State Department of Environmental Conservation’s successful Brownfield Cleanup Program and is eligible for $1.5 million in tax credits administered by the New York State Department of Taxation and Finance. Separately, the Erie County Industrial Development Agency also approved nearly $2.2 million in sales and property tax abatements.
Niagara Power Transformer, with roots dating to 1924, has grown into a century-old Western New York manufacturer known for continually advancing its technology and expanding its testing capabilities. Its recent acquisition by Quanta Services — a Fortune 200 infrastructure leader — underscores the company’s long-term stability and ongoing investment in the region. The firm’s expanded operations will support additional job growth throughout Western New York’s manufacturing supply chain, where Niagara Power Transformer already relies on more than 160 New York suppliers across steel fabrication, machining, coatings, electrical equipment, transportation and industrial services. By expanding domestic production of critical grid equipment, the project will strengthen Western New York’s manufacturing economy while supporting grid resiliency, clean energy deployment and continued economic growth across the state.
New York Power Authority President and CEO Justin E. Driscoll said,“Niagara Power Transformer’s expansion project, supported by $4.5 million in NYPA funding, represents a significant investment in Western New York that will strengthen the domestic supply chain of critical grid infrastructure, support high-quality jobs, and help deliver the reliable, affordable and clean energy that New Yorkers depend on.”
“Niagara Power Transformer’s century-long legacy in Western New York is entering an exciting new chapter,” Empire State Development President, CEO & Commissioner Hope Knight said. “With Governor Hochul’s support, this landmark expansion reinforces the region’s vital role in accelerating New York’s clean energy transition—all while keeping high-quality manufacturing jobs in Western New York and creating new, good-paying opportunities for local workers.”
NYS Department of Environmental Conservation Commissioner Amanda Lefton said, “Major upgrades and modernization of the Niagara Power Transformer facility site illustrates how New York is meeting the demands of an expanding energy supply chain head on. Under Governor Hochul, DEC’s successful Brownfield Cleanup Program continues to address environmental pollution, help protect public health and support economic development, especially in underserved communities most impacted by legacy industrial pollution.”