May 13, 2015

2 Hauppauge Companies Plan $7.2 Million in Expansions

2 Hauppauge companies plan $7.2 million in expansions

Updated May 13, 2015 10:00 AM


Two buildings on the north side of Engineers Road in Hauppauge are the focus of expansion projects totaling $7.2 million, records show.

The larger of the two projects involves Aladdin Packaging LLC., a fast-growing manufacturer of bags used to sell chips, nuts, candy and paper products. It plans to purchase 85 Engineers Rd. for use as an additional factory and warehouse.

The property is next door to Aladdin’s headquarters at 115 Engineers Rd.

Joel Endzweig, the company’s chief financial officer, said the additional space “will enable us to aggressively pursue new business since manufacturing and warehousing space will not be an issue.”

He said Aladdin bags are used for Bazzini nut assortments and Wise potato chips, Cheez Doodles and corn chips, among others.

The 45-year-old Aladdin has grown quickly in recent years. The proposed $5.3 million expansion represents a tripling of the amount of space the company was using in 2005.

The project will add 10 people to the current payroll of 105 over two years. Records show that workers earn, on average, $31,655 per year, excluding medical benefits.

Last month, the Suffolk County Industrial Development Agency offered to reduce Aladdin’s taxes by up to $234,300, including a $183,600-reduction in property taxes over 10 years, IDA executive director Anthony J. Catapano said last week.

Endzweig, in a letter to the IDA, said the company wants to remain on Long Island but one of its owners has a building in New Jersey that could accommodate the expanded operation. “It is our intention to stay and grow where we started, but we need assistance from the IDA with our taxes,” he wrote.

Last month, the IDA also offered tax breaks valued at up to $421,000 to Citation Clinical Labeling Systems, which wants to rent nearby 55 Engineers Rd. for its headquarters and plant.

Citation, founded in 1963, makes labels used in drug trials by pharmaceutical and biotechnology companies. It plans to move from rented space in Edgewood.

The $2 million project will add 12 jobs to Citation’s payroll of 57 workers by 2018. Records show that employees earn, on average, $62,256 per year.