A fast-growing manufacturer of vitamins and nutritional supplements, along with a sister company that produces generic drugs, will together create 150 jobs in Hauppauge as part of a $17.5 million expansion, officials said Thursday.

Vitamin maker Bactolac Pharmaceutical Inc. and Sciegen Pharmaceuticals Inc., which recently won federal approval to manufacture generic drugs, plan to purchase 330 Oser Ave. Both are headquartered in Hauppauge.

The businesses will renovate the 92,000-square-foot building and construct a 50,000-square-foot addition.

The project is the latest expansion in Long Island's burgeoning drug industry, which has added hundreds of jobs and invested millions of dollars in equipment and buildings in recent years.

Bactolac and Sciegen plan to use 330 Oser to store raw materials, which in turn will free up space in their existing six buildings -- all in Hauppauge -- for manufacturing and packaging products, said Renee Reynolds, chief financial officer for the companies.

She said there is increased demand for Bactolac's powder supplements, while Sciegen will need more space for production when it secures more drug approvals from the U.S. Food and Drug Administration.

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"To remain competitive, we need to expand the business," Reynolds told the board of directors of the Suffolk County Industrial Development Agency. "We do prefer to stay on Long Island because of the strong employee base and to be in close proximity to our existing operations."

She said she and Pailla M. Reddy, majority owner of both companies, have been approached by economic developers from Georgia, Virginia and the Carolinas.

The IDA Thursday agreed to provide $2 million in tax breaks over 15 years to support the Oser Avenue project.

In 2007, the IDA supported Bactolac's first major expansion in return for promises that 33 people would be added to the payroll within two years. Bactolac exceed its hiring goal and now employs 355, records show.

Two years ago, the IDA backed another Sciegen expansion, which also received help from New York State in 2011.

Reynolds said the businesses are again seeking state aid.

Most of the new jobs -- 100 -- will be at Bactolac. Sciegen, which now has 113 employees, plans to hire 50 more.

Records show that employees of the two companies earn, on average, $43,804 per year.