Updated February 28, 2017 8:10 PM
By James T. Madore email@example.com
A fast-growing manufacturer of labels used in the cosmetics industry dropped plans to move to North Carolina yesterday, saying it would instead go to Hauppauge.
The owners of Precision Label Corp. in East Farmingdale made a promise to remain on Long Island minutes after the Suffolk County Industrial Development Agency offered them $332,750 in tax breaks over the next 10 years.
The incentive, which includes a property-tax savings of $221,600, or a 27.5 percent reduction, will support the company’s proposed move to Hauppauge. The $6 million project would protect 30 jobs and create seven more in two years.
In his application for IDA assistance, Precision Label president Bradley Cohn said last week he was weighing a move to North Carolina because it offers “lower taxes and wages. . . . To remain competitive we need to purchase state-of-the-art equipment, and we need some tax relief.”
Precision employees earn, on average, $68,000 per year, excluding medical and retirement benefits, records show.
“With today’s decision by the IDA we are moving forward with our plans for Hauppauge,” Cohn said in an interview yesterday.
The company also is seeking help from New York State and PSEG Long Island.
Amy Varghese, a spokeswoman for Empire State Development, the state’s primary business-aid agency, said it was “working closely with Precision Label Corp. to ensure they can continue to grow and thrive on Long Island.”
Seventy-five percent of the company’s labels are found on leading cosmetics brands, including Sephora, Mary Kay, Revlon, CoverGirl and L’Oreal. Its labels also are used by Channing Daughters Winery in Bridgehampton and other wineries.
Precision wants to purchase a 39,000-square-foot building at 50 Marcus Blvd. in Hauppauge. The deal would more than double the company’s space, allowing for more equipment and employees. It operates from 175 Marine St. in East Farmingdale, south of Republic Airport.
Cohn said Precision is in the midst of a growth spurt, having increased sales by 40 percent in the past three years and added eight employees.
He also said that while Precision in its present form dates to 1990, its roots go back more than 50 years to a German military pilot who immigrated to the United States after World War II.
The pilot opened a small label business in Glen Cove in 1965 but moved five years later to South Carolina. A new owner then moved the company in 1980 to Virginia before Cohn bought the then-struggling business and moved it back to Long Island.
Cohn now owns Precision with his son, Richard.
Bradley Cohn said yesterday that the Island has lost three of about a dozen label manufacturers in the past three years; two shut down and one moved. He said, “I’m trying to keep my business here.”