BNY Mellon adding 400 jobs in Mass.
State expected to OK tax credit for bank
Bank of New York Mellon Corp., which recently announced plans to move 200 workers from Rhode Island to Westborough, now says it plans to add nearly twice that number of jobs in Massachusetts.
The financial giant, which already has 4,000 jobs in the state, said it now plans to move at least 250 jobs from Pawtucket, R.I., to Westborough this fall and also will create nearly 150 new jobs at the site next year. The bank handles recordkeeping and other administrative chores for mutual fund companies at its Westborough facility.
BNY Mellon, the largest custodian bank in the country with $25.5 trillion in assets under management, has been able to expand by selling additional services to existing clients, which include mutual funds, pension funds, and other institutions.
“It’s a very robust business,’’ said Joseph F. Ailinger Jr., a company spokesman. “It is growing, and we are winning more work.’’
In April, the company said it decided to close its Pawtucket facility because its lease will expire soon and it had surplus space in Westborough, where it already has 900 employees. The bank gained both the Rhode Island and Westborough facilities as part of an acquisition last summer.
As part of the move, BNY Mellon plans to invest $3.2 million to renovate and equip 12,000 square feet of existing office space on Computer Drive.
The state is expected to approve as much as $317,000 in tax credits for the company tomorrow to help finance the expansion. The company said the tax incentive was an important factor in its decision to consolidate its operations in Massachusetts, where it already has a cooperative relationship with the state.
“BNY Mellon’s proposed expansion will lead to short- and long-term economic benefits for the Commonwealth, and promises to strengthen our global standing in the financial services sector,’’ Greg Bialecki, the state’s housing and economic development secretary, said in a prepared statement.
BNY Mellon’s announcement is a bright spot for Massachusetts after Fidelity Investments’ recent decision to shutter its Marlborough site by the end of next year, eliminating or moving 1,100 jobs.
Many of those jobs will be moved to Rhode Island, New Hampshire, and other states.
Overall, employment in the financial sector has been roughly flat in recent months. The state had 167,500 jobs in the finance and insurance industries as of May, down a few hundred from the same month in 2010.
The Economic Assistance Coordinating Council, the state board charged with overseeing many economic development incentives, is also slated to vote on state and local tax breaks for more than a dozen other companies tomorrow.
For instance, E Ink, which makes the displays used in the Amazon Kindle and other e-readers, plans to move its headquarters from Cambridge to Billerica as early as next year, adding 100 jobs and retaining 254 existing jobs.
The town has already approved a $2 million local property tax break, and the state could chip in a tax credit of its own to support E Ink’s $30 million expansion into a 139,000-square-foot facility.
The state is also expected to give final approval for a $12 million local property tax break to support Vertex Pharmaceuticals Inc.’s move from Cambridge to a new building in South Boston.
Other companies on the council’s agenda include Affordable Interior Systems LLC, which plans to add 126 jobs in Leominster, and Stergis Aluminum Products Corp., which is adding 74 jobs in Attleboro.
Todd Wallack can be reached at firstname.lastname@example.org.