ELLICOTTVILLE — The steel company that purchased the Siemens Energy site in North Olean finalized its agreement with the Cattaraugus County Industrial Development Agency on Thursday.

Cimolai-HY, which is spending $56.7 million to open a steel fabrication center, plans to hire up to 225 tradesmen and 25-30 office staff. The company paid Siemens Energy $7.7 million for the former Dresser-Rand site where compressors were manufactured for more than 100 years. The IDA previously approved a benefits package that included about $5.3 million in sales tax exemptions.

“This closing signifies the company’s final commitment to start the project,” said IDA Executive Director Corey Wiktor after Thursday’s meeting. “They have already begun hiring some employees.”

Cattaraugus County lawmakers previously gave Cimolai-HY a $2 million loan that will be forgiven if it meets employment targets.

Siemens Energy announced in February 2021 that it was closing the Olean plant and laying off about 500 remaining steelworkers, although 100 were given jobs in the company’s Painted Post operation. Only the engineering division remained at the Olean site.

Cimolai-HY is in the process of spending $1.5 million to remodel and reconstruct a portion of the nearly 1 million square feet facility on the 88-acre site. Local contractor Dugan & Duggan of Allegany is the general contractor helping to ready the site, said Wiktor.

Cimolai-HY plans to spend $33 million on manufacturing equipment, $11.1 million for startup, commissions and training costs, $603,000 for engineering and $500,000 for furniture and fixtures.

The company expects an annual payroll of $15 million.

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The IDA also closed a $4 million deal for sales tax and mortgage recording tax and payment in lieu of taxes agreement with Pierce Steel Fabricators Co. of Olean, which has purchased the former Sanzo Beverage Co. building on Route 16 in Hinsdale and plans to move operations there.

Reconstruction at the new site has required expensive rewiring and reconstruction should get underway in the next few weeks, Wiktor said. Overhead cranes will be installed to move both raw material and finished items through the building.

“It signifies growth in the company,” Wiktor said of Pierce Fabricators. Plans are being considered for the site of current operations on Seventh Street next to Mazza Sheet Metal Inc., Wiktor indicated.

An $8 million project by Win-Sum Ski Corp., the owners of Holiday Valley Resort in Ellicottville, was also approved by the IDA board. Benefits were limited to sales tax exemptions.

The bulk of the expenditure is a $6 million special six-person chairlift for Holiday Valley’s Mardi Gras slope.

“Holiday Valley is prepared to construct the lift using their local crews and have it ready to go for the Fall Festival,” Wiktor said. “They’ve already sold the existing Mardi Gras quad lift to a resort in Chile. It’s headed for South America.”

Holiday Valley crews poured the foundations for the towers for the new lift last summer. “It’s a two-season installation,” Wiktor said.

Holiday Valley comptroller David Thathen, who attended the IDA board meeting, described other projects the resort plans including renovations at the Inn at Holiday Valley, information technology, snow guns and a snow-cat.

(Contact reporter Rick Miller at rmiller@oleantimesherald.com. Follow him on Twitter, @RMillerOTH)

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