Johnston & Rhodes, a fourth generation family-owned bluestone business, will expand its operations in East Branch, creating 25 new jobs, state officials announced Monday.

The company, which started in 1900 and has 45 employees, will invest more than $1.7 million in a new machinery and equipment, in addition to building a new stone processing facility. Officials said the investment will enable the company to modernize production capabilities as well as increase efficiency and output.

As part of the project, a 16,000 square-foot facility will be built, adding production area to the current 7,000 square-foot stone mill and two smaller saw buildings. The company is eligible for a $50,000 capital grant from Empire State Development to assist with the purchase of new machinery and equipment.

"It is exciting to have Johnston & Rhodes expand their operations, as the increase in production capabilities will mean new jobs and ultimately a boost for our local economy," Assemblyman Clifford Crouch, R-Bainbridge, said in a prepared statement. "It's great to have additional employment opportunities on the horizon in Delaware County."

Charles A. Gargano, chairman of Empire State Development, said small, family-owned businesses are a vital backbone to New York's economy.

President Peter Johnston of Johnston & Rhodes said with the investment in new machinery and equipment, the firm will continue providing high-quality stone products throughout the world.

The company supplies engineering firms for a variety of projects, from college campuses to Rockefeller Center, company officials said.