As part of a strategic growth initiative that involves upgrades at other facilities, Flexaust Co. is adding a hose production plant in Burlington, N.C.

The hose and ducting manufacturer is leasing a 57,000-square-foot factory and plans to spend more than $3 million in the next two years for new equipment and infrastructure upgrades. Production is expected to begin in the first quarter of 2020.

Flexaust will run five hose-production lines manned by 30 employees initially, which is expected to increase to 50 in five years. The company is receiving financial assistance from the city, county and state for the project. The funding includes a reuse grant to help with infrastructure costs because the company is occupying an older building, with the funds paid once the company reaches the job targets expected.

With facilities in Amesbury, Mass., Warsaw, Ind., and Las Vegas, the company had coverage throughout the United States except in the Southeast.

“It just made sense looking at putting something in the Southeast, with the customer base and the amount of product coming into this area, so we could better service our customers,” Michael Harvey, Flexaust vice president and general manager, said in a statement.

The Burlington plant will manufacture products for the firm’s Genesis, Flexaduct and Flexaust lines.