Polyset Co. in Stillwater is adding a $1.66 million research and development center to its proposed expansion in Saratoga County after coming off a record year when sales topped $20 million for the first time.
The second-generation manufacturer of adhesives, coatings and epoxy used in everything from air filters and bridges to ships and floors wants to focus more heavily on product development while adding more capacity to keep up with sales already in the pipeline.
Owners Niladri “Nil” Ghoshal and Rajat “Raj” Ghoshal are asking the Mechanicville-Stillwater Industrial Development Agency for a tax-incentive package to offset part of the cost of a proposed $2.54 million expansion on the eastern edge of Saratoga County.
The brothers are renovating two warehouses, totaling roughly 25,000 square feet, at 35 and 75 S. Central Ave. in Mechanicville that they acquired for $938,000 in August. The expansion is located a half-mile south of Polyset’s 3.5-acre campus on Hudson Avenue in Stillwater.
“We have seen so much growth and stability from our existing businesses in Saratoga County, it is really important for companies like Polyset to continue investing here,” said Tori Riley, vice president of Saratoga Economic Development Corp., a nonprofit organization that is assisting Polyset with its tax-incentive request.
Polyset was awarded incentives from the industrial development agency last year for a smaller expansion. The price tag grew after the company decided to move forward with the new research lab.
“We need to make sure the people operating here are taken care of,” Riley said.
The industrial development agency is reviewing Polyset’s incentive request. A public hearing and potential vote will be held in August.
Despite lingering signs of a softening economy and concerns about recession, Polyset has seen steady demand for its products. Revenue grew by 20% last year to $20 million, and the Ghoshals have said their next challenge is adding space and equipment that will allow them to churn out more products faster.
Polyset is requesting $59,780 in sales tax exemptions, a $15,255 mortgage tax exemption and $371,937 in property tax exemptions. If approved, after factoring in fees and administrative costs, the incentive package would save the company $407,403 over 10 years, according to documents filed with the industrial development agency.
The company also has been awarded a $250,000 grant from New York’s economic development arm.
The expansion will help Polyset increase its workforce from 43 to 53 full-time employees within three years after the project is complete. Construction is expected to wrap up by the end of the year.
Polyset plans to hire three production workers, a customer service representative, a quality control technician, a coatings technician and a regional sales representative with annual salaries ranging between $35,000 and $75,000.
