A Seymour manufacturer of plastic compounds plans to double its workforce this year after gaining new business.

Alterra Plastics will invest $700,000 in new manufacturing equipment, including mixers and blenders, to add two new production lines and expand existing manufacturing capabilities, according to a statement of benefits the company filed with the city last week.

That will result in the need to hire 18 new employees, bringing Alterra’s total workforce in Seymour to 36, said Jim Plump, executive director of Jackson County Industrial Development Corp. The company estimates additional salaries of more than $350,000, Plump said.

The company, located at 2213 Killion Ave. in the Eastside Industrial Park, produces bio-plastic compounds that are used in a variety of markets, including automotive, agriculture and household, said company representative Peter Russo.

Alterra previously operated as Trellis Earth Products and Cereplast.

On Monday, the Seymour City Council approved Alterra’s request for tax abatement on the investment, allowing the company to phase in paying taxes on the equipment over a 10-year period.

The project is expected to start at the beginning of February and be completed by the end of the year.

Councilman Matt Nicholson asked where Russo and other upper management at Alterra lived.

“The reason I ask is that I would love to see our corporate heads invested in our community in business as well as the residential side,” Nicholson said.

Russo said he and the plant manger live in Seymour, while the company’s financial officer lives in Columbus.