US-based Davis-Standard is expanding its primary facility in Pawcatuck, Connecticut, to accommodate the production of advanced multi-layer blown film dies.
Davis-Standard designs and manufactures high-performance plastics and rubber processing equipment, extrusion technology and converting systems.
As part of the investment, 15,000ft² of manufacturing space will be added at the company's headquarters.
An additional 30 jobs will be created in the next two years at the site, which currently employs over 400 people.
Davis-Standard president and CEO Jim Murphy said: "As the largest extrusion machinery manufacturer in North America, this expansion is a necessity for our business.
"Last fall we acquired Gloucester Engineering, which greatly strengthened our blown film product line through resources in sales, engineering and service.
"These dies are used for making highly technical multi-layer films used in packaging and pharmaceutical applications. To that regard, this expansion aligns with our mission of offering customers excellent quality, value and customer service."
The expansion will also enable Davis-Standard to move all blown film manufacturing for its Gloucester Engineering product line from Gloucester, Massachusetts, to Pawcatuck.
Scheduled for completion in late 2016, the expansion is being supported by Connecticut Governor Dannel P. Malloy, the State of Connecticut Department of Economic Community Development, and the local government.
Davis-Standard has been operating in Southeast Connecticut since 1848.
The company has manufacturing facilities and subsidiaries in the US, Europe and Asia.