For release: June 27, 2003
For information: Cortland BDC/IDA (607) 756-5005
www.cortlandbusiness.com
Media Release:
BUCKBEE-MEARS GROUP ANNOUNCES MAJOR INVESTMENT IN CORTLAND COUNTY
Move Will Consolidate Operations, Retain 400 Jobs And Create 120 New Jobs
Lt. Governor Mary Donohue visited Cortland today to join Buckbee-Mears Group President Gary W. Nelson in announcing that the company, a division of BMC Industries, will consolidate its Mullheim, Germany manufacturing operation into its Cortland, NY facility, rather than relocate its Cortland operation to Germany. The company will also conduct a structured shutdown of its facility in Tatabanya, Hungary, as part of its decision to contract the operations of its Buckbee-Mears group into its existing Cortland facility.
The company's choice of Cortland over Germany will result in the retention of all 400 existing jobs in Cortland, and create an additional 120 jobs within the next three years. Buckbee-Mears will also invest $7 million in Cortland, including $3 million for production line upgrades and modifications, and $4 million for equipment and parts transfers.
"Rather than losing these important jobs to Germany, I’m happy that New York State and local officials worked closely to convince the company to remain in Cortland," according to Lt. Governor Donohue. "Our rapid and significant response persuaded the company to choose New York State over Germany. As a result of our pro-business policies, the company will not only retain vital jobs for this region, but will also expand its facility and create an additional 120 new jobs."
Gary Nelson, President, Buckbee-Mears Group said, "We are extremely grateful for Governor Pataki’s and Lt. Governor Donohue’s efforts in providing grants to help secure the future of the Cortland facility. These grants, along with the flexibility of our workforce and our state-of-the-art facility, furthers our ability to be competitive in our markets."
Faced with strong competition from Asia, Buckbee-Mears had to consolidate and streamline its manufacturing operations. Among the factors leading to the company’s decision to close their German operations were greater plant capacity and available land for future expansion in Cortland. The company’s investment will include the reopening of two production lines that have been idle in Cortland.
BMC Industries, Inc. headquartered in Minneapolis began operations in 1907 with photolithography and chemical etching of metal. During the 1950s, the company’s technology was utilized to develop aperture masks, which today are used in color televisions and computer monitors. BMC has grown to become one of the world’s largest manufacturers of aperture masks, and is the only independent mask manufacturer located outside of Asia. In 1998, the Buckbee-Mears Division of BMC completed a $100 million expansion at its Cortland facility which added two state-of-the arts Aperture Mask manufacturing lines to its existing three-line plant, enabling BMC to compete in the high-end, high-margin CDT mask business. In addition to the Cortland plant, BMC operates a second mask production facility in Mullheim, Germany and a vision-ease lens production facility in Ramsey, Minnesota.
Congressman Sherwood Boehlert said, "Today’s exciting announcement provides tangible evidence that our effective working partnership from Cortland, to Albany, to Washington, is unlimited in its potential. Once again, Governor Pataki’s leadership and the tireless efforts at the state level are to be commended. Most importantly, the Buckbee-Mears innovative workforce and the business friendly New York/Cortland region made this announcement not just possible - but necessary for a dynamic company with an exciting future. World headquarters for an expanding workforce in Cortland, New York has a nice ring to it."
Senator James Seward said, "Today's announcement that Cortland, New York will be the base of worldwide operations for Buckbee-Mears is a dramatic and positive step for our area that means new jobs and business growth. Working together, we were able to show that Cortland can compete with the rest of the world in providing what businesses need to grow. I commend the governor, the Cortland BDC, ESDC and local officials who helped make it happen. This is a great day for Cortland, New York and I was pleased to be part of it."
Charles A. Gargano, Chairman of Empire State Development said, "This is yet another example of Governor Pataki’s leadership and commitment to make New York State the best place in the country and world to start and expand a business. The Governor has made it a top priority of his administration to establish key, progressive initiatives and policies that allow businesses to stay and prosper in New York."
Linda Dickerson Hartsock, Executive Director, Cortland County Business Development Corporation/Industrial Development Agency said, "We were pleased to be part of this partnership effort, involving federal, state, county and local governments, to facilitate this critical decision by Buckbee-Mears. We look forward to continuing to work aggressively with BMC to build its world-class base here in Cortland County."
Assemblywoman Barbara Lifton added, "Cortland County is a perfect home for businesses like Buckbee-Mears. Our Empire Zone and our commitment to quality schools and colleges that provide a well-educated workforce foster the perfect business environment. I look forward to helping more companies located and expand here to create good-paying jobs for our communities."
In consideration of the company’s commitment to New York State, Buckbee-Mears is eligible to apply for a one million dollar capital grant from Empire State Development for costs relating to line upgrades and modifications at the Cortland facility. Buckbee-Mears is also is eligible for up to $750,000 through the Governor’s Office of Small Cities, through the City of Cortland. Other components of the incentive package include special economic incentive grants being sponsored by Senator James Seward, as well as Congressman Sherwood Boehlert and Senator Charles Schumer. The Cortland County IDA has initiated the process of amending BMC’s existing PILOT to reflect the company’s commitment to add jobs, and will work with the company to help attain Empire Zone benefits. Niagara Mohawk/National Grid has invited BMC to apply for a $50,000 grant from its Industrial Redevelopment Program.
Today’s announcement follows a March 2003 move by Buckbee-Mears to enter into an exclusive development and supply agreement with Cordis Corporation, a wholly-owned unit of Johnson & Johnson (NYSE: JNJ) and a global leader in developing and marketing devices for circulatory disease management. The agreement with Cordis is to develop and manufacture metal stents for treating blocked circulatory vessels. The Cordis project is also being developed at Buckbee-Mears’ Cortland facility.
"We are excited to enter into this agreement with Cordis, which represents the culmination of four years of development efforts aimed at creating a wholly unique way of utilizing our etching process," stated Paul B. Burke, BMC’s Chairman and Chief Executive Officer in March 2003. "With the opportunity to participate in the rapidly growing stent market, combined with the ability to deploy this new technology to produce other products, we expect significant new revenue streams."
"Cordis is pleased to begin this association with Buckbee-Mears for the development and introduction of this new technology into our expanding product line of cardiovascular stents," said Henry Esparza, Vice President, Cordis Operations Worldwide, in making the March 2003 announcement. Under terms of that agreement, Buckbee-Mears will complete development of technology at its Cortland facility that will allow for the manufacture of coronary stents using a proprietary process.
Today’s announcement, along with the March 2003 announcement, solidifies Cortland as the base for Buckbee-Mears Group’s worldwide operations for Micro-Technology and Mask operations. The Micro-Technology group is a leading producer of a variety of precision photo-etched and electroformed components that require fine features and tight tolerances. Through its Mask Operations, Buckbee-Mears is the only independent North American manufacturer of aperture masks.
In making the decision to keep Cortland as the facility of choice, the company considered Cortland’s greater capacity, the recently constructed Medical Technologies Division, a clean room high-tech environment, and most importantly, a highly skilled and productive workforce at its Cortland plant. The move will mean restarting two idle lines in Cortland, with much of the hiring anticipated in the next six months. The incentive package will help Cortland offset the start-up and on-going operations costs to start the lines.
For more information about BMC Industries, Inc., visit the Company’s website at www.bmcind.com.

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