On March 29, Sumitomo Rubber USA LLC broke ground on its $129 million expansion project in Tonawanda, N.Y (above). The new 55,000-square-foot building – which should be completed over the summer – signals Sumitomo’s long-term commitment to the region, as it will create around 50 new jobs and represents a significant upgrade of the company’s 100-year-old facility.

To support the project, National Grid is providing more than $1 million in New York State Clean Heat incentives to install 10 rooftop heat pumps that will heat and air condition the existing plant, replace old rooftop units and be installed at the new building.

Funding was provided through New York State’s Clean Heat Program, which offers financial incentives to National Grid electricity customers who install heat pump technology for space and/or water heating. Additional funding was provided through National Grid’s Energy Efficiency program, which includes financial incentives for commercial and industrial customers for decreasing energy use and carbon reduction.

Rooftop heat pump systems provide treated air for large buildings by mixing outside air with return air from indoors. After it’s been filtered, the air is conditioned – which can include heating, cooling or dehumidifying – and supplied back into the building.

Sumitomo manufactures up to 12,000 tires every day for cars, motorcycles, light trucks and buses. The expansion will allow production to increase to 18000 tires per day. Most of the tires are made under Sumitomo's Falken brand name, while the Dunlop brand name appears on motorcycle tires.

By helping customers like Sumitomo become more energy efficient and cost competitive, National Grid achieves goals that have been established by New York Public Service Commission. Examples of companies in recent years that have taken advantage of National Grid’s various energy efficiency programs have included:

• Barilla America, which made a series of improvements to its packaging line.
• Nestlé Purina, which created a more sustainable work environment and reduced greenhouse gas emissions at its Dunkirk facility.
• Linde PLC, which used National Grid incentives to cover up to 19 percent of LED lighting costs at its Tonawanda facility.
• Cummins’ Jamestown Engine Plant, where an LED lighting program resulted in an annual savings of $425,000, and avoidance of 2,200 tons of carbon dioxide equivalent per year.
  
  

“This investment allows us to remain in Western New York and continue to produce high-quality tires for our customers,” said Tim Sprunger, Sumitomo Vice President of Operations and Plant Manager. “This is an investment that will result in a high level of automation; and automation doesn’t mean that you replace people, it means that you can make three tires instead of one, in the same amount of time.”

Sprunger thanked a series of companies or entities that provided support for the project, including elected officials and companies and entities that provided rebates or incentives. Among those he mentioned were the Town of Tonawanda, Erie County Industrial Development Agency, Empire State Development Corp., New York Power Authority and National Grid.

“National Grid is playing an important role regarding the new heat pumps, which will help us achieve the targets of ‘Driving Our Future Challenge 2050,’ Sumitomo’s long-term sustainability policy,” said Sumitomo Facilities Manager Paul Mertzlufft. “This policy pledges to reduce total CO2 emissions at all of our factories worldwide by 50 percent – when compared to 2017 emissions levels – by 2030. This is part of our larger global goal to achieve full carbon neutrality by 2050.”

From left, National Grid's Marc Gschwend and Rob Compise
with Sumitomo Facilities Manager Paul Mertzlufft.

“We provide incentives to manufacturers like Sumitomo Rubber, who may be competing internally for corporate investment dollars,” said National Grid Regional Director Ken Kujawa. “The goal of our programs is to put them in the best position to win investments and, ultimately, lower costs so that they can grow in Western New York.”

National Grid’s energy efficiency incentives

• The company offers a variety of incentives to customers who install energy-efficient lighting, controls, HVAC equipment, motors, electronic speed controls, and other systems that reduce energy use and/or enhance productivity.
• In 2021, National Grid provided $46 million in incentives through its energy efficiency programs to support electricity and natural gas projects across the company’s New York service territory.
• National Grid’s energy efficiency programs align with the company’s clean energy pilar of Project C, the company’s recommitment to its long and proud history of giving back to customers and communities. Project C’s other key priorities include workforce development, neighborhood investment and community engagement, and environmental justice and social equity.    
  
  

National Grid’s Net Zero by 2050 Plan provides pathway to cleaner, greener future

As one of the largest energy companies in the northeast, National Grid plays a vital role in connecting millions of people to the energy that they use and rely upon every day. In 2020 the company announced its Net Zero by 2050 Plan, which is aimed at achieving net zero gas emissions by 2050, including those from the transmission and delivery of natural gas to customers. The plan builds upon the company’s Responsible Business Charter, which established National Grid’s commitments to the environment, employees, customers and communities. We look forward to collaborating on solutions and focusing our efforts to address challenges related to reducing energy demand, decarbonizing the gas network, using large scale renewables, integrating innovative technologies and more beyond 2050.

About National Grid

About National Grid: National Grid (NYSE: NGG) is an electricity, natural gas, and clean energy delivery company serving more than 20 million people through our networks in New York, Massachusetts, and Rhode Island. National Grid is transforming our electricity and natural gas networks with smarter, cleaner, and more resilient energy solutions to meet the goal of reducing greenhouse gas emissions.

For more information, please visit our website, follow us on Twitter, watch us on YouTube, friend us on Facebook, and find our photos on Instagram.