therising
September 14th, 2006, 03:08 PM
I've heard people on this MB say that HSBC has plans to move large amounts of jobs from WNY. This would appear to indicate otherwise:
http://www.buffalonews.com/editorial/20060914/1049349.asp
HSBC North America Holdings is planning a $200 million-plus global data center in Western New York, its second locally, to handle the growing number of transactions for its U.S. and Canadian banks.
The subsidiary of London-based HSBC Holdings Plc wants to build a facility in Niagara County to complement the much smaller site it built in September 2001 on Park Club Lane in Amherst. At least four rural sites are being considered, including in Pendleton, but a final decision has not been made, bank and other officials say.
The proposed new center would be about 275,000 square feet, including electrical and mechanical space, and would largely be for computers and other technology. That's nearly five football fields worth of space, larger than National Fuel Gas Co.'s former headquarters downtown.
The older facility, with about 50,000 square feet, will also be upgraded and expanded, said HSBC spokeswoman Kathleen Rizzo Young.
Altogether, the technology project will add about 78 jobs for HSBC, which employs 5,830 in Western New York - 2,600 in Buffalo. The bank's annual payroll locally is $292 million.
Because the operation is largely technology-based, such data centers don't involve many workers, but are still major investments. The current facility, which has just a few dozen employees, cost $21 million to build and $47 million to equip. And it's only about one-sixth the size of the new one.
HSBC and economic development officials would not put a definite figure on the project's cost because plans are not complete, but "the project will represent another very significant long-term local investment for HSBC," Young said by e-mail.
HSBC is working with state and local economic development agencies - including Empire State Development, Buffalo Niagara Enterprise and the Niagara County Industrial Development Agency - but the agencies have not finalized financial incentives. The bank is also seeking low-cost power from the New York Power Authority, since electricity and telecommunications are a major factor in the project.
Young said both benefits are "a key factor" in the project, but said the bank has received "tremendous assistance" from local agencies. Plans call for starting construction in the first half of next year, depending on when all approvals are given.
"This project is close to being finalized and we have been working very diligently to bring it to Western New York," said HSBC Bank USA Chief Operating Officer Brendan McDonagh. "We have always said that HSBC remains consistent in its commitment to Western New York and successful conclusion of this project will be one more testament to that."
Economic development officials declined to comment, saying the deal isn't done yet.
HSBC's data centers, operated by HSBC Technology & Services USA, are the computer hubs of the bank, processing customer transactions for HSBC Bank USA and HSBC Canada. Besides Amherst, the bank also has one in Illinois, where its North American and HSBC Finance operations are based.
However, the bank has grown tremendously in the United States and Canada since the Amherst center opened, including HSBC's 2003 acquisition of Household International, now HSBC Finance, and its branch expansion in California, Florida, New Jersey, Connecticut, Pennsylvania and Washington, D.C.
As a result, additional facilities are needed, although HSBC is still trying to determine how many and where. Besides Western New York, the Chicago area is also getting "priority consideration" because of the existing facility there and HSBC's sizable corporate presence and employee base in both locations, Young said.
"We had a very good experience in establishing our global data center in Amherst which bodes well for the success of a similar project," Young said.
HSBC, formerly Marine Midland Bank, was founded in Buffalo in 1850 and is the No. 2 bank locally by deposits, after M&T Bank. Besides the proposed facility, HSBC owns or leases nearly 1.5 million square feet of space in Western New York. It also owns naming rights on the HSBC Arena through 2027.
"We've got a huge investment in Buffalo. We've got a huge investment in Erie County," Young said in an interview. "Niagara County could use it, and from that standpoint, we think it's great news."
http://www.buffalonews.com/editorial/20060914/1049349.asp
HSBC North America Holdings is planning a $200 million-plus global data center in Western New York, its second locally, to handle the growing number of transactions for its U.S. and Canadian banks.
The subsidiary of London-based HSBC Holdings Plc wants to build a facility in Niagara County to complement the much smaller site it built in September 2001 on Park Club Lane in Amherst. At least four rural sites are being considered, including in Pendleton, but a final decision has not been made, bank and other officials say.
The proposed new center would be about 275,000 square feet, including electrical and mechanical space, and would largely be for computers and other technology. That's nearly five football fields worth of space, larger than National Fuel Gas Co.'s former headquarters downtown.
The older facility, with about 50,000 square feet, will also be upgraded and expanded, said HSBC spokeswoman Kathleen Rizzo Young.
Altogether, the technology project will add about 78 jobs for HSBC, which employs 5,830 in Western New York - 2,600 in Buffalo. The bank's annual payroll locally is $292 million.
Because the operation is largely technology-based, such data centers don't involve many workers, but are still major investments. The current facility, which has just a few dozen employees, cost $21 million to build and $47 million to equip. And it's only about one-sixth the size of the new one.
HSBC and economic development officials would not put a definite figure on the project's cost because plans are not complete, but "the project will represent another very significant long-term local investment for HSBC," Young said by e-mail.
HSBC is working with state and local economic development agencies - including Empire State Development, Buffalo Niagara Enterprise and the Niagara County Industrial Development Agency - but the agencies have not finalized financial incentives. The bank is also seeking low-cost power from the New York Power Authority, since electricity and telecommunications are a major factor in the project.
Young said both benefits are "a key factor" in the project, but said the bank has received "tremendous assistance" from local agencies. Plans call for starting construction in the first half of next year, depending on when all approvals are given.
"This project is close to being finalized and we have been working very diligently to bring it to Western New York," said HSBC Bank USA Chief Operating Officer Brendan McDonagh. "We have always said that HSBC remains consistent in its commitment to Western New York and successful conclusion of this project will be one more testament to that."
Economic development officials declined to comment, saying the deal isn't done yet.
HSBC's data centers, operated by HSBC Technology & Services USA, are the computer hubs of the bank, processing customer transactions for HSBC Bank USA and HSBC Canada. Besides Amherst, the bank also has one in Illinois, where its North American and HSBC Finance operations are based.
However, the bank has grown tremendously in the United States and Canada since the Amherst center opened, including HSBC's 2003 acquisition of Household International, now HSBC Finance, and its branch expansion in California, Florida, New Jersey, Connecticut, Pennsylvania and Washington, D.C.
As a result, additional facilities are needed, although HSBC is still trying to determine how many and where. Besides Western New York, the Chicago area is also getting "priority consideration" because of the existing facility there and HSBC's sizable corporate presence and employee base in both locations, Young said.
"We had a very good experience in establishing our global data center in Amherst which bodes well for the success of a similar project," Young said.
HSBC, formerly Marine Midland Bank, was founded in Buffalo in 1850 and is the No. 2 bank locally by deposits, after M&T Bank. Besides the proposed facility, HSBC owns or leases nearly 1.5 million square feet of space in Western New York. It also owns naming rights on the HSBC Arena through 2027.
"We've got a huge investment in Buffalo. We've got a huge investment in Erie County," Young said in an interview. "Niagara County could use it, and from that standpoint, we think it's great news."