LEOMINSTER, MASS. — Leominster Die Service Inc., an injection mold manufacturer, has doubled its space and plans to add $500,000 in new machinery during the next five years.
The company recently spent $300,000 to add 10,000 square feet of space to its present site, which opened in 1984.
Leominster Die has been in business 30 years.
``We're expanding, because it was getting too crowded in the 10,000 square feet we had,'' said President Bob Putnam. ``Business has doubled, so we added on and moved in new equipment. We haven't filled it up yet, but I didn't think we would fill up the old building either.''
He said customer demand drove the change. Leominster Die serves a New England base and found a need for larger molds. It spent $150,000 to add bigger equipment, according to Putnam, and expects to spend $350,000 for more machinery in the next five years.
Leominster Die mainly makes single- and two-cavity tools, including enclosures for the medical and computer industries.
The company employs 20 and expects to add five or six employees in the next three years.
The company won a property tax break from the city of Leominster. Under the tax increment finance plan, the firm will save $8,700 in property tax during a four-year period. It also will receive a 5 percent state tax credit on the new machinery.
The incentive plan is designed to create jobs in state-approved economic target areas.
``It is a great retention tool for the city and also a way of attracting new companies,'' said Trevor M. Beauregard, economic development coordinator for Leominister.
The program is not aimed solely at plastics firms, but Leominster Die is the fourth plastics company to participate in the past four years. The others are F&M Plastics, C-Plastics Corp., and United Plastics Corp., which was granted an 11-year incentive last year valued at nearly $1 million.