A New York-based nutritional supplement company announced today that it will bring a factory and ultimately as many as 500 jobs to Augusta.

The company, NBTY Inc., will purchase the 400,000-square-foot building that was the Bill’s Dollar Store distribution center on Tobacco Road and begin moving equipment in a few months, said Walter Sprouse, the executive director of the Development Authority of Richmond County.

NBTY, which has 38 factories and distribution centers worldwide, chose Augusta because of the business-friendly environment.

“The whole group there have been very helpful … you want to go where you’re wanted,” said President and Chief Financial Officer Harvey Kamil.

The move is the biggest commercial economic development announcement the area has seen since call center company Sitel Corp. brought about 500 jobs in 1999.

“Our community always wants the Development Authority of Richmond County to get a home run. In this case, I think we hit it out of the park,” authority Chairman Loren Perry said.

At its board meeting today , the authority approved a $40 million industrial revenue bond that will help the company finance the operation. NBTY will hire about 200 employees initially and could begin production in six months, Mr. Sprouse said.

There are plans to double the size of the building, which is on 27 acres in south Augusta, said Scott Atkins, of Atkins and Asssociates Realty Co., which marketed the property.

NBTY, which is based in Bohemia, N.Y., on Long Island, produces more than 1,500 nutritional supplements under several brand names, including MET-Rx, Carb Solutions and CarbWise. It also produces private-label brands for Wal-Mart and other major chain stores.

An expectation of a strong surge in NBTY’s main customer demographic – baby boomers – prompted the decision to expand the company, Mr. Kamil said.

“Someone turns 50 every eight seconds in the United States. Based on that information , we believe we’re going to continue to need additional plant capacities to service what we think is the need in the next several years,” he said.

The company, which also operates Vitamin World and Nutrition Warehouse stores in the United States, had $420 million in sales during the last quarter of 2004, was named Wal-Mart supplier of the year in 2003 and was recognized as one of the nation’s fastest-growing companies by Fortune magazine in 2004.

NBTY’s announcement means a new occupant at the former Bill’s facility, which cost $20 million and shut down in 2001 – a little more than a year after its construction .

During the past few years, the facility, which had an asking price of $11 million, had been leased by distribution companies, Mr. Atkins said.

Mr. Sprouse said the project, which was referred to Richmond County by the Georgia Department of Economic Development, has been in the works for nearly a year.

Reach Adrian Burns at (706) 823-3352 or adrian.burns@augustachronicle.com