An American Pharmaceutical Partners executive said the company needs more plant capacity and is considering an expansion on Grand Island that could create 55 jobs.

The company, which acquired the Grand Island plant from Fujisawa USA in 1998, is branching from strictly generic drugs to its own line of proprietary injectable cancer drugs.

The company has 385 local employees, but said its payroll would grow to 440 if the 18,206-square-foot expansion of its Staley Road plant is finalized.

The ECIDA approved American Pharmaceutical for a lucrative tax abatement package for the expansion. The company would save $955,139 in property taxes over 15 years, $144,800 in sales tax and $111,705 in mortgage recording tax.

The expanded plant would still generate $636,760 of additional revenue during the 15-year abatement period, mainly for the Grand Island Central School District, than its currently pays in local taxes.

American Pharmaceutical has applied for an allocation of low-cost hydropower which was recently marketed by the Buffalo Niagara Enterprise and Niagara Mohawk.

The New York Power Authority, which generates the hydropower in Niagara County, is expected to rule on the company's application during a meeting later this month.

The ECIDA also agreed to assist Mullican Flooring, a Tennessee company, that plans to invest $4.5 million to modify a building into in a new plant in Holland that will eventually employ 62 people manufacturing hardwood floor planks.

The company decided to open a new plant in Western New York, rather than expand existing plants in Virginia and West Virginia.

The ECIDA approved an inducement package for the project granting Mullican $93,725 in tax breaks over a 10-year period.

Empire State Development Corp. and Buffalo Niagara Enterprise, a regional marketing initiative, worked on attracting both the Mullican Flooring and the American Pharmaceutical projects here.

Final details regarding economic development incentives for the Mullican plant are also still being worked out by Empire State Development and the Power Authority, said Thomas A. Kucharski, who heads both the ECIDA and BNE.

"We met with Mullican on several occasions to help dissuade them from looking at other markets for this project," Kucharski said.

Mullican makes lines of red oak and white oak wood flooring sold nationally through distributors. The company also makes specialty lines of ash, cherry, hickory, walnut and maple planks.

The company will acquire a 124,761-square-foot commercial building at 324 Vermont St. in Holland and construct a 3,000-square-foot addition to start manufacturing here.

Mullican executives in Johnson City, Tenn., could not be reached to comment.

In other business Wednesday, the ECIDA:

Approved a $338,834 tax abatement package for Crescent Manufacturing to relocate and modernize its automotive fluids plant in Eden and retain 121 jobs.

Authorized a $6.6 million bond sale for MHT Holdings, led by Mark Trammell, to acquire and renovate the Pilgrim Village Apartments on Ellicott Street and Michigan Avenue in Buffalo. The 90-unit affordable housing complex was previously operated by his father, former chief city court judge Wilbur Trammell.