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Bank of New York Mellon won't expand local data center
Wednesday, May 07, 2008

The Bank of New York Mellon Corp. has decided not to expand its data center northeast of Pittsburgh, as it said it would do in June 2007, and keep open another processing center in New Jersey instead.

The financial services company said in an e-mail the decision "does not impact our previous announcement to bring an additional 200 technology-related jobs in the Pittsburgh area." The "majority" of those positions will now be housed "in various IT groups in our Downtown Pittsburgh offices."

Spokesman Ron Gruendl attributed the decision to "our continued global business growth" and the rising costs of construction and specialized data center equipment. Last June, the company predicted the expansion would cost $70 million.

The Armstrong County data center opened in spring 2006 and consists of an office building and operations center at the Northpointe Industrial Park. The current use will not change, Mr. Gruendl said, and upgrades in security and power capabilities also will be added.

The spokesman emphasized via e-mail that the company is "on track" to meet its job commitments made when The Bank of New York agreed in December 2006 to buy Mellon Financial Corp. and place the headquarters of the combined company in New York.

The firm had pledged to create 1,000 to 2,000 jobs in three to five years. It also predicted than fewer than 10 percent of 6,200 local positions would be cut through firing, not filling open positions or normal job attrition.

It has said little about specific cuts since December 2006. For example, Mr. Gruendl confirmed last month there were local job losses on March 31 but was unwilling to say how many.

The company has been more vocal about new jobs being created. In fact, it has announced a total of 620 new positions, and Mr. Gruendl said the company anticipates another jobs announcement before the end of May. Since Jan. 1, 2007, Mr., Gruendl said, the company's total workforce locally has increased by a net number of 482.

Dan Fitzpatrick can be reached at dfitzpatrick@post-gazette.com or 412-263-1752.
First published on May 7, 2008 at 12:00 am
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