WALLKILL, NY-Pratt & Whitney will be investing approximately $140 million in leased space at 225 Tower Drive here to build-out state-of-the art manufacturing space for its new Pratt & Whitney Technical Coating Systems operations.

The East Hartford, CT-based firm, which is a division of United Technologies Corp. of Hartford, CT, has signed a lease-to -purchase agreement with building owner The Frassetto Companies of Upper Saddle River, NJ for the 71,000-square-foot building that until about a year ago was the headquarters for Durasol Awnings. The newly formed Pratt & Whitney Technical Coatings will apply state-of-the-art coatings to engine turbine components, including blades and vanes, through the use of advanced manufacturing processes, company officials state. Durasol Awnings relocated operations to Chester, NY.

Pratt & Whitney is an aerospace manufacturer with global service operations that designs, manufactures, services and supports aircraft engines, auxiliary and ground power units, and small turbojet propulsion products.

The initiative at 225 Tower Drive will create 100 new jobs at the facility. Orange County officials say the advanced manufacturing equipment to be installed at the new facility has been estimated to cost approximately $100 million.

Pratt & Whitney also announced that it will retain 95 jobs at its Advanced Coating Technologies operations housed at 60 Turner Drive and 109 Tower Drive in the Town of Wallkill. Pratt & Whitney had operated there in a joint venture with Chromalloy, but acquired Chromalloy’s shares in ACT last month. The activities at the two buildings now operate as Pratt & Whitney Advanced Coating Technologies. The company leases a total of approximately 72,000 square feet of space at the two buildings that are also owned by The Frassetto Companies.

Empire State Development has offered the company various incentives including, a $900,000 capital grant and up to $1.6 million in Excelsior Jobs Program tax credits, both of which are directly tied to job-creation and investment commitments, as well as other incentives, state officials note. Also, in order to enhance the area to make the site more attractive, the Town of Wallkill advanced the repair of drainage and paving systems on the project site. The company, which held talks with the Orange County Partnership, the county’s chief economic development agency, for the past 18 months is also expected to apply for incentives with the Orange County Industrial Development Agency and perhaps the Wallkill Industrial Development Agency.

“Pratt & Whitney’s decision to make a major investment in the Hudson Valley is great news for the Town of Wallkill and Orange County, and for the advanced manufacturing industry in New York State,” states Empire State Development President, CEO and Commissioner Kenneth Adams.

“Pratt & Whitney is making significant investments in our global manufacturing network as we enter a period of growth,” states Joe Sylvestro, vice president, manufacturing operations at Pratt & Whitney. “This expansion of thermal barrier coatings in New York is an example of our effort to expand our capabilities and capacity while also improving the robustness of our manufacturing network. All of these elements will enable us to deliver on our customer commitments.”

The Orange County Partnership had nicknamed the Pratt & Whitney expansion/attraction requirement as “Project X.”

Town of Wallkill Supervisor Dan Depew said of Pratt & Whitney’s investment, “The addition of Pratt & Whitney to our town is extremely welcome. High-end companies like this are not easy to land but a strong team, including the Town of Wallkill, the Orange County Partnership, and Governor Cuomo’s office, worked together to make this happen. This company and what it offers helps put Wallkill on the map as a true job creation town.”

Maureen Halahan, president and CEO of the Orange County Partnership adds, “This high-tech manufacturing project is among the most significant attraction projects in over a decade. It brings advanced manufacturing jobs to Orange County and expands our high-tech manufacturing base in the Town of Wallkill. This project represents new technology with a company who is an innovator in its field.”

A Pratt & Whitney spokesman says the firm will receive various incentives from the state of New York and Orange County of more than $5 million. The total state and local incentive package is valued at $24 million, he adds.

The company will begin outfitting the building in the next few months and expects start-up of its operations at 225 Tower Drive in the late 2014 to mid-2015 time frame depending on equipment deliveries and customer requirements.