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American Douglas Metals plans to move its aluminum and steel processing operations from the Town of Tonawanda to a much bigger site in Buffalo in a $2.9 million project that is expected to create 11 new jobs over the next two years.

American Douglas, a family-owned business that makes and processes aluminum and steel products at plants in Tonawanda, Orlando, Fla., and Atlanta, will nearly triple its space by moving to the vacant Millcraft facility at 99 Bud Mill Drive.

The Erie County Industrial Development Agency approved $49,000 in sales and mortgage tax breaks for the project on Monday. The company also could seek property tax incentives if the project results in an increase in the $1.6 million assessment on the property, said Karen Fiala, the IDA’s assistant treasurer.

American Douglas executives said the company needed to move from its current 30,000-square-foot location on Henderson Avenue in the Town of Tonawanda because the company’s rapid growth requires it to expand their operations, but its current site does not have room for an expansion.

The company’s new Buffalo location will have almost three times as much space – 87,000-square-feet – and ECIDA officials said the project is expected to increase American Douglas’ work force from 21 today to 32 in two years.

Because the project involves tax breaks that support the move of a company from one Erie County municipality to another, Town of Tonawanda Supervisor Anthony Caruana was consulted on the project and said he had no objections.

Caruana said Town of Tonawanda officials had worked with the company to try to find a suitable site for expansion in the town but were unable to find one. The cost of acquiring and demolishing properties next to its Henderson Avenue plant made it too expensive to expand at that location, and no other sites in the town met American Douglas’ requirements, he said.

“This is a good opportunity for them,” Caruana said. “The good news is that they’re staying in Erie County.”

email: drobinson@buffnews.com