Knowlton Technologies, Engineered Composites & Media, Watertown, received a $425,000 boost from the state's chief economic development agency this week.

The company learned Friday that it had received the grant from Empire State Development during the latest round of funding announcements from the agency.

Frederick G. Rudmann, president and chief executive officer of Knowlton, said the company will use the grant to pay down debt and add 10 new jobs.

Mr. Rudmann, together with fellow Knowlton managers James S. Ganter and James M. Lee, purchased the company from retiring owner Franklin D. Cean in April.

The $15.9 million deal encompassed both the business and the Factory Street building.

Mr. Rudmann said the three had factored the Empire State Development grant into their original financing package, which also included $150,000 from the state's Office for Small Cities and $25,000 obtained by the office of former state Sen. James W. Wright.

"We're keeping 100 percent control of the company in Watertown, New York," Mr. Rudmann said. "We could not have done it without the support of state and local agencies."

Since the purchase agreement was finalized three months ago, Mr. Rudmann said, the partners have reduced their debt by about $200,000.

The ESD grant will help reduce the debt further, he said, which will free working capital so the company can continue to expand.

Knowlton is expecting to grow by 10 percent annually, adding $3.5 million in sales next year. The company also plans to add 10 jobs to the current roster of 101 employees by the end of 2009, Mr. Rudmann said.

"Business has been going well," he said. "We have been having record sales. Our profits have been excellent."

Knowlton will receive half of the ESD grant this year and the other 50 percent after the 10 positions have been added.

Besides Knowlton, companies from Broome and Cortland counties received Economic Development Fund grants from the ESD.

The board also agreed to distribute $9.55 million among five Restore New York Community grants, including $300,000 to the village of Heuvelton for the renovation of Pickens Hall.

Among its ESD assistance awards, which totaled $97,000, the board authorized a $25,000 grant to the Viking Cives Corporation of Harrisville in Lewis County.