UPDATE 1-NY in public-private deal to keep Canon HQ in state

(Adds estimate of Empire State Development benefits)

NEW YORK, Sept 15 (Reuters) - New York Governor David Paterson on Tuesday announced an agreement with electronics and imaging manufacturer Canon U.S.A. (7751.T) that will keep its headquarters in the state and safeguard about 2,000 jobs.

New York's department of transportation will spend $8 million constructing new lanes on highways serving Canon's planned new headquarters, a $636 million facility in Melville, on Long Island, Paterson said in a statement.

Canon is moving its headquarters from its current location in Lake Success, also on Long Island. The company employs about 1,200 people and expects to add another 800 in 10 years.

The move is expected to increase Long Island's gross regional product by $1.3 billion and create up to 10,000 associated local jobs, according to the Long Island Association, a business and civic group.

Canon will also be entitled to Empire State Development benefits once construction begins. They are estimated at $45 million, depending on how much the company invests and how many jobs are created, a spokesperson said.

The project "will stimulate the Long Island economy while boosting regional employment and increasing tax revenue for the state," said Dennis Mullen, chairman of Empire State Development.

Empire State Development is a New York agency that promotes business development across the state and sells bonds to fund social programs and promote job growth. (Reporting by Ciara Linnane; Editing by James Dalgleish and Dan Grebler)