Monticello-based Ultra Machining Co. (UMC) has reached an agreement with the Monticello Economic Development Authority to build a new 40,000 square foot facility in the city.

UMC chief operating officer Jaci Dukowitz said the project is expected to be a multi-million-dollar undertaking. The company expects to add 60 new jobs within the new facility’s first three years of operation. (UMC currently employs about 200.)

The expansion comes as increased market demand has pushed the existing production facility to its capacity limits, Dukowitz said in a statement. As a result, more space is required to take on new customers and increase output.

It will also allow for increased operational efficiency and flexibility, according to Dukowitz. Plus, the new facility will help create a campus setting for the company.

“It’s an integral part of our next phase of growth and we’re excited to be embarking on this initiative,” said Dukowitz in the company’s announcement.

In an email to TCB she added: “In manufacturing, you can't be late to the game. We've seen a steady and ongoing increase in demand. We've been thoughtful and strategic about how we want to handle this growth, and while we know there are risks, we would rather be ahead of it than behind it.”

For Monticello’s part, the city is happy about UMC’s expansion. The company is one of the city’s largest employers.

“UMC has been a fantastic business from the very beginning and just an anchor to our employee base in Monticello,” said Jeff O’Neil, Monticello’s city administrator. “They create good-paying jobs and they’re just a quality company.”

As part of the agreement between UMC and the Monticello EDA, the city is contributing to the expansion by purchasing the land of the proposed site through tax-increment financing, says O’Neill.

“Obviously the ripple effect is really positive, and it’s just good when you have a great partner like that in the community that decides to stay and grow in the town that they’re in,” O’Neill said. “We’re really excited they’re interested in expanding in Monticello.”

Based on the planned development site—which is right next to the company’s current building at 500 Chelsea Road East in Monticello—the new facility could ultimately grow to 85,000 square feet, resulting in up to 125 new jobs.

“This project would provide us multiple expansion points and we're excited about that potential,” said Dukowitz.

The project is still in the approval process stage, but work is expected to begin in late 2019 or early 2020.