New York State is backing the expansion of a local defense contractor with $250,000, allowing it to move work to Long Island from the South.

The grant from the Empire State Development Corp. will help GSE Dynamics Inc. to open another factory in Hauppauge.

The company purchased 110 Oser Ave. for about $3.4 million and is now relocating there production that has been done in Georgia.

Anne D. Shybunko-Moore, company president, had considered moving most of GSE's manufacturing to Georgia or South Carolina, where taxes and energy costs are lower.

But she decided last year to expand in Suffolk County because of the company's skilled workers, training programs in the county to produce more of them, and loyalty to the Island.

She expects to add 10 people to her payroll of 48.

Andrea Lohneiss, regional director for Empire State, said the state money would be used to offset $1.3 million in equipment purchases. GSE needs the machinery to fulfill federal contracts for about $50 million in parts for the Air Force's C5 transport airplanes over five years.

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Empire State's board of directors unanimously approved the grant last week. Shybunko-Moore serves on the Long Island Regional Economic Development Council, but it did not vote on her aid application.

In July the county's industrial development agency offered GSE $749,000 in tax breaks.