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Vitamin maker planning $4.9M expansion, adding 24 jobs

A&Z Pharmaceutical owner and chief executive Emma Li

A&Z Pharmaceutical owner and chief executive Emma Li Xu shows some vitamin supplements that were produced on Feb. 11, 2016, in the company's Hauppauge facility. Photo Credit: Barry Sloan

A fast-growing manufacturer of dietary supplements is planning a $4.9 million expansion that involves two of its buildings in Hauppauge, officials said Thursday.

A&Z Pharmaceutical Inc., which is best known for producing 1.6 billion tablets of a vitamin D and calcium supplement each year for shipment to China, expects to add at least 24 people to its payroll of 99 within two years.

Records show employees earn, on average, $51,000 per year excluding medical and retirement benefits.

A&Z received approval on Thursday for $742,500 in tax breaks from the Suffolk County Industrial Development Agency, including a 55 percent reduction in property taxes over 10 years that will save the company $396,500.

A&Z is among about 25 manufacturers of vitamins, supplements and nutritional ingredients that have operations on Long Island. Together they have created hundreds of jobs and in return have received assistance from IDAs and the state.

“This project will allow the company to bring back some manufacturing that it has outsourced to California,” said Peter L. Curry, A&Z’s outside attorney for real estate.

He told the IDA’s board of directors that A&Z wants to construct a 26,700-square-foot addition to 350 Wireless Blvd., which it purchased in 2014 and is now renovating for use as a headquarters, second factory and warehouse. The company also plans to rent 6,500 square feet of additional space at 180 Oser Ave., where it has offices and manufacturing.

The expansion will help A&Z boost its sales by 10 percent in each of the next five years, Curry said.

A&Z’s 2015 sales totaled between $45 million and $50 million, with 98 percent derived from exports to China of D-Cal, the vitamin D and calcium supplement, owner and chief executive Emma Li Xu said earlier this month.

A&Z also is developing generic prescription drugs.

In 2014 the Suffolk IDA granted A&Z $1.7 million in tax breaks over 10 years to support its $26.8 million purchase of the Wireless Boulevard building.

In return, the company promised to create 30 jobs, which it has done, said IDA executive director Anthony J. Catapano: “They are a year ahead of their projected employment.”

That project also received low-cost electricity from the New York Power Authority and $1.5 million in state tax credits from Empire State Development, the state’s primary business-aid agency.

The agency’s CEO Howard Zemsky said Thursday, “Instead of shipping jobs to China, this company will be shipping New York-made products to China and other markets around the world.”

Separately, the IDA in 2014 granted a sales-tax exemption of $530,197 on equipment purchases for the Oser Avenue factory.

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