A manufacturer of skin cream, sunscreen and acne medicine must rent a Melville warehouse to make room for more production at its local factories, officials said on Thursday.
Topiderm Inc. won $318,100 in tax breaks over 10 years from the Suffolk County Industrial Development Agency to support the additional warehouse.
The company, with its headquarters in North Amityville, currently employs more than 450 people in three buildings in Babylon Town.
“We intend to grow the company another 100 percent from where it is today,” Topiderm president Eric K. Stern said at an IDA meeting on Thursday. “We are expanding our manufacturing.”
To accommodate increased sales, the company wants to rent 46,665 square feet of space at 5 Hub Dr. in Melville for use as a warehouse. The company and landlord Rechler Equity would spend a total of $1.3 million on building renovations and equipment purchase.
The IDA aid includes property-tax savings of 233,600 over 10 years, or a 27.5 percent reduction.
In return for the help, Topiderm executives said they would hire 10 people for the Melville warehouse. Those workers are projected to earn, on average, $35,000 per year, according to IDA records.
Stern said Topiderm acquires two to three businesses a year, bringing their work to Long Island. Two deals are being negotiated now that would bring the company’s total workforce to over 600 people, he said.
Stern said he hopes to rent a 60,000-square-foot building across from the proposed Melville warehouse to be an additional factory.
Topiderm, which was founded nearly 40 years ago, is a contract manufacturer, producing skin-care items for other businesses. Its Topix Pharmaceuticals division is the largest independent provider of professional skin-care products in the United States. Topix products are sold under the names Citrix, DermaTopix, Glycolix, ReBrightalyze, Replenix, ResurFIX and SRS.
Topiderm is owned by founder Burt Shaffer and Manhattan private equity firm New Mountain Capital. New Mountain purchased a controlling interest in the skin-care manufacturer in July 2016.
Earlier this year, New Mountain bought the chemicals business of Aceto Corp. in Port Washington for $422 million in a bankruptcy court auction.
Previous expansion projects by Topiderm have been aided by the Babylon IDA and the state Power Authority.
Anthony J. Catapano, Suffolk IDA executive director, said Thursday that Topiderm is a key player in the local pharmaceuticals industry, which accounts for about 10,000 factory jobs, Census data shows.
"The biosciences and pharmaceuticals industry is one of the top employers on Long Island and it's important to continue to assist this sector," he said.