IsleChem, a chemical research and development company led by Chief Executive Officer Charles Rader, bought the Long Road site's land, building and equipment from OxyChem. The new company employs 35 people, nearly all of whom used to work for OxyChem.

Earlier this year, OxyChem announced plans to shut the site in a cost-cutting move and eliminate its 40 remaining jobs. The center employed 275 people at its peak.

Rader and two other principals, Edward Rowe and Dale Kunze, approached OxyChem about buying the site and keeping it alive. The three each own one-third of IsleChem.

OxyChem had also considered demolishing the high-tech building and selling the land, Rader said. "We looked like a pretty viable alternative to that."

IsleChem bought the building and land for $375,000. Rader declined to disclose the full value of the deal, which included assets such as laboratory equipment.

On Wednesday, the Regional Development Corp. approved a $500,000 line of credit for IsleChem. The RDC is a subsidiary of the Erie County Industrial Development Agency.

IsleChem's scope of work includes contract research and development, analytical services, sales and marketing representation in the United States for foreign companies, manufacturing of small-scale chemicals and "scale-up" work on ideas that start out in a lab.

OxyChem is one of IsleChem's customers, Rader said.

The Grand Island building consists of 88,000 square feet - much more space than IsleChem needs, so it's seeking tenants. It already has one: Durez, which was occupying space there under a previous arrangement with OxyChem.

Combined, IsleChem and Durez are using about 25 percent of the building's space. Rader said IsleChem is close to signing two other tenants, whom he declined to identify.

IsleChem has also met with University at Buffalo officials to explore opportunities for working together, Rader said.

IsleChem officially began operations this month, but it already has an experienced work force since it hired so many former OxyChem employees, he said. Plus, the company expects to tap into a base of "semi-retired" workers in the area who want to stay involved on a contract basis.

The new company hopes to have doubled its employment two years from now. Rader said he's not sure IsleChem will ever grow to more than 100 employees, but he noted that its average salary is $70,000 a year. "We're a knowledge-based organization," he said.

Rader, a local native who started with Oxy in 1974, said it was satisfying to bring back people who had worked for him at the Grand Island center. "We're optimistic and having a lot of fun," he said.

e-mail: mglynn@buffnews.com and cbridger@buffnews.com.