Erne Extrusions Ltd specialises in the design, manufacture and distribution of moulded plastic products for the GB and European uPVC roofing markets.
Invest NI has offered £171,000 towards the investment which will help the new company generate over £2m in sales in its first three years, and create 18 new jobs by 2011.
Enterprise Minster Arlene Foster welcomed the expansion.
She said: "Erne Extrusions Ltd has identified major business opportunities for its specialist product range.
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Key to its success will be the adoption of manufacturing processes, which rely heavily on the use of recycled materials.
"This will enable the company and its customers to meet increasingly stringent environmental obligations."
Vincent McCoy, Managing Director of Erne Extrusions Ltd, said: "Even though the new business is still at an early stage, demand for items such as soffit trims, facia boards and j-trims, is steadily increasing.
"This is mainly due to our extensive export marketing campaign which is a key part of the investment project, and which has been supported by the tailored support we accessed through Invest NI's Western Regional Office."
Gerry Cadden, Sales Director of Erne Extrusions Ltd, said: "Where house building may have slowed down, renovations of existing properties are increasing as people invest more modestly in home improvements.
"By using recycled raw materials, Erne Extrusions Ltd can reduce waste, make major cost savings and deliver uPVC products which tick all the boxes in terms of environmental responsibility."
(PR/BMcc)
