David Riley, and Brian Sharp

Democrat and Chronicle

Two photonics companies have pledged to bring hundreds of new jobs to the Rochester area over the next five years — the first major employment news to emerge from a state- and federally-backed photonics manufacturing initiative announced nearly eight months ago.

These companies, Photonica and Avogy, are expected to create 850 jobs.

Their work is supposed to indirectly support another 550 Rochester-area jobs at businesses that may supply or make components for the companies, according to Gov. Andrew Cuomo's Office — which touted the promise of a combined 1,400 jobs.

To lure the companies here, the state has agreed to invest $75 million in equipment and in facility improvements at Canal Ponds Office Park in Greece, where the firms will do research and development work, and at Eastman Business Park in Rochester, where manufacturing eventually will be based.

"This is a huge announcement. This is the start of the flow for the photonics investments," said Robert Duffy, president and CEO of the Greater Rochester Chamber of Commerce and chairman of the AIM Photonics Leadership Council, which will help oversee the $600 million federally-backed photonics institute announced last year.

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"Getting a company to pick up and move, even with all the incentives imaginable, is a difficult thing," Duffy said.

SUNY Polytechnic Institute will own and lease the facilities and equipment to the companies, said Andrew Kennedy, deputy director of state operations for policy. The state money will come out of the $250 million pot that the state has pledged to the institute, Cuomo said.

The governor announced the news Wednesday morning at Eastman Business Park, at one point showing the roomful of local dignitaries and reporters a mobile device charger that Avogy developed.

The company is relocating from Silicon Valley.

"Just think how amazing that is," Cuomo said. "If I had said to someone a couple of years ago, 'I think we are going to be attracting companies from Silicon Valley to come to Rochester,' somebody would have said, 'You've got to watch that governor. He's drinking something funny. Make sure it's coffee in that cup.'"

Company representatives, however, had little to say Wednesday. A Photonica Inc. representative said the company would make no public statements. The company develops visual technology for equipment like video displays, televisions and virtual reality devices.

Avogy CEO Dinesh Ramanathan said the company would have about 200 jobs in the initial local ramp up. That number is expected to double within five years. Avogy expects to relocate within six to nine months, he said. The firm focuses on making cheaper, more efficient power devices.

Photonica is well-known in the industry, said Tom Battley, executive director of the Rochester Regional Photonics Cluster and New York Photonics. Photonica, based in California, is expected to directly produce 450 local jobs.

Avogy raised $40 million in capital investment in 2014, according to a news release. The company was founded in 2010.

Battley said Wednesday's news will help Rochester's photonics industry to continue to gain recognition.

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“I think what an announcement like this can do is attract people from other cities in New York state and other people from other cities in the northeast who don’t see this as a big stretch,” he said.

Filling the needed jobs could be a challenge, but a good one, Battley said. He said Monroe Community College is already working to prepare workers for jobs in applied photonics. That program is overseen by Alexis Vogt, who echoed Battley, noting the shortage of optics and photonics technicians. Demand is so high, she said, a second-semester student in the two-year program recently was hired by a company willing to accept summer and part-time hours until he graduates.

While Wednesday's announcement was largely good news for the industry, Battley said some members of the photonics cluster are concerned about whether leaders of the photonics initiative plan to also fund existing local companies.

Avogy and Photonica are expected bring $1.6 billion in investment to the region, Cuomo said.

Joining Cuomo at Wednesday's announcement was SUNY Polytechnic Institute President and CEO Alain Kaloyeros, who has played a key part in the photonics institute. He was intimately involved along with Cuomo in the recruitment of Avogy and Photonica, according to Duffy, while local officials were kept informed of the progress. Kaloyeros also was central to a squabble over the extent to which the state and local decision-makers control the photonics initiative.

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University of Rochester President Joel Seligman, co-chair of the Finger Lakes Economic Development Council, stood opposite Kaloyeros and Duffy in the feud and was seated in the front row of the audience. Seated with Cuomo, Kaloyeros and Duffy at the speakers table were Lt. Gov. Kathy Hochul, Wegmans Food Markets CEO and economic council co-chair Danny Wegman and Empire State Development President and CEO Howard Zemsky.

U.S. Rep. Louise Slaughter, D-Fairport, and Sen. Charles Schumer, both of whom pressed to establish the photonics institute in Rochester, hailed Wednesday's news.

"The private-sector photonics companies are coming," Cuomo said, then directed his remarks to the cadre of Rochester-area officials in the audience. "You have a program in front of you that, if you just follow through, can change the future dramatically.

"But you have to it. You have to do it."

DRILEY@Gannett.com

BDSHARP@Gannett.com