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Castelli America buys Blockville facility

BLOCKVILLE – A taste of Italy is coming to Chautauqua County.

Nuova Castelli Group, a cheese manufacturer based in Reggio Emilia, a city in northern Italy, is bringing its operations to the U.S. for the first time after acquiring Empire Specialty Cheese Co.’s Blockville facility.

Officials from Castelli America, a new subsidiary of Nuova Castelli Group, marked the beginning of a new endeavor on Tuesday as Paul Bensabat, president, acknowledged the company has its first plant in the U.S. Bensabat, who spent 23 years in the consumer food product industry, spent 18 years as president and CEO of Lactalis/Sorrento Cheese.

Founded in 1892, Nuova Castelli is a producer and distributor of Italy’s famous cheeses. Bensabat said Castelli is the second-largest cheese manufacturer in Italy and the first manufacturer of protected designation of origin cheeses including Parmigiano Reggiano, parmesan cheese, and Grana Padano, a hard, semi-fat cheese. The company also produces Mozzarella di Bufala Campana, or buffalo mozzarella.

In Europe, Nuova Castelli has 14 manufacturing facilities and 11 distribution centers. Bensabat said the Blockville facility will become their base platform in the U.S. as they look to expand in the years to come.

“We’re not a giant. We’re a medium-sized company,” Bensabat said. “We are run like a family company and a corporate company at the same time. Castelli is a very old company. Very few companies have the privilege of being around for 125 years.”

In his opening remarks, Bensabat said the deal to acquire the Blockville facility wasn’t an easy one due to the fact there were many issues involved. But he said it wouldn’t have come to fruition without state and local officials coming together to assist. The deal was on a fast track after Empire Specialty Cheese ran into financial and wastewater problems.

“It is amazing to see how a team effort can make something happen because the deal fell apart several times and we weren’t going to do it because of a certain amount of difficulties,” he said. “Everybody was helpful to make this deal happen and have a transition that’s working.”

Luigi Fici, CEO of Castelli Group, said the facility purchase is their first step. Increasing employment numbers from the 80-90 workers at the facility already and distributing a wide range of products from hard to soft cheese are goals that Fici acknowledged.

“There’s a reason why we’re here. I’m sure it will be a success,” he said.

Bensabat complimented state Sen. Cathy Young as he said she positioned herself as coordinator for the project from Day 1. Young, R-C-I-Olean, said the plant is important to Chautauqua County’s agricultural industry.

“Ninety-two Amish families sell their milk to this plant. Those families would have lost that ability to sell milk if this plant closed,” she said. “It’s a new beginning in Chautauqua County. This plant is not just going to be here and keep the jobs, it’s going to thrive.”

In return for Castelli’s job and investment commitments, Empire State Development will provide a $500,000 capital grant and a $5.5 million loan to upgrade the plant into a state-of-the-art dairy manufacturing facility. Howard Zemsky, commissioner for ESD, said they want to make sure the dairy industry continues to thrive in Western New York.

“For more than a century, Castelli has worked consistently to produce high-quality cheese products in Italy, and its purchase of the facility, as well as its commitment to retaining all of the plant’s jobs, is a huge win,” he said.

The company will also continue payments on loans that Empire Specialty Cheese had received. The New Jersey-based company received a $600,000 grant from New York state after announcing that they’d be moving to the former AFA Foods facility in Blockville in 2013. The grant filtered down to the county was issued to the cheese company in the form of a $300,000 loan and a $300,000 deferred loan, according to IDA officials.

Kevin Sanvidge, administrative director and CEO for the Chautauqua County IDA, placed emphasis on cooperation during the past four weeks leading up to the closing of the deal. If Empire Specialty Cheese’s owners didn’t come to Chautauqua County, Sanvidge said they wouldn’t have been able to “pass the baton.” Sanvidge acknowledged the work by the owners to grow the company up to 90 jobs.

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