The Omnicon Group Inc., which develops computer software, testing equipment and other electronic systems for Fortune 500 companies, plans to nearly triple its office space in Hauppauge, officials said this week.

The company is moving within the Hauppauge Industrial Park, from a 5,182-square-foot space at 40 Arkay Dr. to a 14,967-square-foot space at 50 Engineers Rd.

The $437,000 project involves a larger test and integration laboratory and more space for engineers and administrative staff, according to Omnicon president Scott B. Abrams.

The business has 35 employees and plans to hire eight more within the next two years.

Last month, the Suffolk County Industrial Development Agency agreed to provide a $17,250 sales-tax exemption on materials needed to equip Omnicon's new office.

Abrams told the IDA that his 30-year-old company needs to reduce expenses because of competition from rivals in other states and countries. He said Omnicon lost more than $3 million in contracts last year, or the equivalent of the salaries of 12 engineers, to low-cost competitors.

advertisement | advertise on newsday

IDA executive director Anthony Manetta this week noted that Omnicon, whose employees earn, on average, $136,631 per year, had considered leaving Long Island.

The company must vacate its current office because the landlord, LNK International Inc., needs the space for its own expansion, according to IDA documents.

LNK, with a workforce approaching 2,000 people, is one of the Island's largest manufacturers of generic over-the-counter drugs. It also has received help from the IDA.