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Business Expansions and Contractions - Long Island Region December 2016

Business Expansions and Openings

Checkmate International, a West Babylon manufacturer of high-precision tools, received an allocation of 180 kilowatts of low-cost power from the ReCharge NY program. The company currently has 200 workers and plans to hire 35 more as it spends $2.3 million on equipment and other improvements.

Modern Meadow, the Brooklyn biotechnology startup which is hoping to make the first genuinely 'synthetic leather' without killing animals, has been awarded low-cost electricity by New York State in hopes of persuading the company to expand in Farmingdale rather than New Jersey. Modern Meadow Inc. is among 11 businesses with Long Island projects to receive discounted electricity from the New York State Power Authority in its latest allocations under the ReCharge NY program. The U.S company received 1,050 kilowatts for a proposed factory and research laboratory at the Broad Hollow Bioscience Park on the campus of Farmingdale State College. Earlier in December, it won $1 million from Empire State Development, the state’s primary business-aid agency, toward the local facility. In return for the aid, the company would move 40 jobs from Brooklyn to Suffolk County, add 160 more and invest $25 million in equipment and other improvements. It would also remain in the Start-Up NY tax-free zones program, where participants don’t pay state and local taxes for as long as 10 years. However, Modern Meadow is weighing whether to expand in New Jersey instead.

Business Contractions and Closings

A manufacturer of paper office supplies in Amityville plans to shut down in March, eliminating 70jobs. Kleer-Fax Inc. has lost money for the past few years as technology reduces demand for its index and legal exhibit tabs, file pockets, folders, vertical files and other office supplies. At the same time intense competition from rivals in China, Mexico and Southeast Asia kept the company from raising prices. The firm’s owner hopes to sell pieces of the business to other people and to sell the New Horizons Boulevard building. New York State records show Kleer-Fax received two low-interest loans in 1992 and 2009 for equipment purchases and other factory improvements. Kleer-Fax filed a required notice with the New York State Labor Department stating that the company would close in 90 days.

Martin Viette Nurseries in Muttontown went out of business on Friday, Dec. 23, 2016, after 87 years. A commercial landscaping company bought the business and its inventory — but not the 42-acre plot on which it is located. The new company, as yet unidentified, plans to reopen the business as a garden center in the spring.

Prestige Industries, will lay off all 141 employees at its Bayshore facility effective January 15, 2017. In a legal filing, the Lyndhurst, New Jersey-based parent company blamed the closing on the “unexpected collapse” of its “tunnel washer system,” which typically consists of automated chutes, conveyor belts and elongated laundry machines. It is not known if any of the Long Island employees would be offered jobs at the company’s other facilities in North Bergen and Paterson, New Jersey.

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