close
close

Gottagopestcontrol

Trusted News & Timely Insights

Pall Corp. cuts workforce in Port Washington and must repay 9,000 in tax breaks
Idaho

Pall Corp. cuts workforce in Port Washington and must repay $239,000 in tax breaks

Pall Corp., once one of Long Island’s most prominent publicly traded companies, has cut its workforce by more than 65 percent and must repay tens of thousands of dollars in tax breaks, company officials said.

The manufacturer of filtration, separation and purification products now employs 77 people at its headquarters and research and development center in Port Washington. In 2017, there were 225, and in 2007, there were 522.

Executives said the job cuts were the result of a shift in business to other states and countries by parent company Danaher Corp., based in Washington, D.C., which bought Pall in 2015.

“From late 2022 through May 2023, (Pall) was subject to a corporate restructuring that included the divestiture of a significant portion of its business to a sister company within the Danaher Group: Cytiva,” Chi Lam, Pall’s interim general counsel, wrote in an Aug. 6 letter to the Nassau County Industrial Development Agency.

“This restructuring … resulted in the majority of the company’s (Port Washington employees) being assigned to Cytiva,” he said in the letter, obtained by Newsday through the state’s Freedom of Information Act.

In doing so, Pall violated the 2017 IDA tax incentive agreement, which requires a minimum of 225 employees to be employed in exchange for 15 years of tax savings. The noncompliance was discovered by the IDA during its annual, government-mandated audit of employment figures at companies receiving tax incentives.

The agency has voted to claw back the $239,073 in tax breaks Pall has received so far under the agreement, which expires in 2033. The agency has also reduced the company’s employment commitment to a minimum of 90 jobs for the future.

According to records, Pall employees earn an average of $100,000 per year.

The tax breaks were granted seven years ago to keep Pall in Nassau after the company sold its headquarters at 25 Harbor Park Dr. to Kiss Nail Products Inc. and then leased back 38 percent of the space. Kiss also received tax breaks at the time to finance the $37.5 million transaction.

At the Aug. 15 IDA meeting, Lam, Pall’s attorney, said the company has created 12 jobs since January and expects to employ about 100 people in Port Washington by year’s end.

“We remain a very viable company and one of Danaher’s largest companies overall,” he said. “We will continue to maintain 25 Harbor Park Drive as our corporate headquarters.”

Lam also said Pall is investing $160,000 in renovating its space in the building and another $4 million is planned for labs over the next three years “as we rebuild our industrial business.” He said research jobs are being relocated to Port Washington from other states.

Lam added that Pall employees would return to the office full-time starting in January when the company ends remote work.

Sheldon L. Shrenkel, CEO and executive director of the IDA, said that while Pall’s job cuts were unfortunate, the company had agreed to “reinstate” previous tax breaks and “its senior executives will continue to be based at the company’s headquarters in Port Washington.”

Pall Corp., once one of Long Island’s most prominent publicly traded companies, has cut its workforce by more than 65 percent and must repay tens of thousands of dollars in tax breaks, company officials said.

The manufacturer of filtration, separation and purification products now employs 77 people at its headquarters and research and development center in Port Washington. In 2017, there were 225, and in 2007, there were 522.

Executives said the job cuts were the result of a shift in business to other states and countries by parent company Danaher Corp., based in Washington, D.C., which bought Pall in 2015.

“From late 2022 through May 2023, (Pall) was subject to a corporate restructuring that included the divestiture of a significant portion of its business to a sister company within the Danaher Group: Cytiva,” Chi Lam, Pall’s interim general counsel, wrote in an Aug. 6 letter to the Nassau County Industrial Development Agency.

“This restructuring … resulted in the majority of the company’s (Port Washington employees) being assigned to Cytiva,” he said in the letter, obtained by Newsday through the state’s Freedom of Information Act.

In doing so, Pall violated the 2017 IDA tax incentive agreement, which requires a minimum of 225 employees to be employed in exchange for 15 years of tax savings. The noncompliance was discovered by the IDA during its annual, government-mandated audit of employment figures at companies receiving tax incentives.

The agency has voted to claw back the $239,073 in tax breaks Pall has received so far under the agreement, which expires in 2033. The agency has also reduced the company’s employment commitment to a minimum of 90 jobs for the future.

According to records, Pall employees earn an average of $100,000 per year.

The tax breaks were granted seven years ago to keep Pall in Nassau after the company sold its headquarters at 25 Harbor Park Dr. to Kiss Nail Products Inc. and then leased back 38 percent of the space. Kiss also received tax breaks at the time to finance the $37.5 million transaction.

At the Aug. 15 IDA meeting, Lam, Pall’s attorney, said the company has created 12 jobs since January and expects to employ about 100 people in Port Washington by year’s end.

“We remain a very viable company and one of Danaher’s largest companies overall,” he said. “We will continue to maintain 25 Harbor Park Drive as our corporate headquarters.”

Lam also said Pall is investing $160,000 in renovating its space in the building and another $4 million is planned for labs over the next three years “as we rebuild our industrial business.” He said research jobs are being relocated to Port Washington from other states.

Lam added that Pall employees would return to the office full-time starting in January when the company ends remote work.

Sheldon L. Shrenkel, CEO and executive director of the IDA, said that while Pall’s job cuts were unfortunate, the company had agreed to “reinstate” previous tax breaks and “its senior executives will continue to be based at the company’s headquarters in Port Washington.”

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *