Dennison Lubricants has received a $4.2 million tax-exempt bond from MassDevelopment to expand its Worcester facility.

The expansion at 692-694 Millbury St. includes construction of a 20,000-square-foot addition, an upgrade to the existing rail spur, installation of a new truck scale, acquisition of additional equipment and improvements to the manufacturing laboratory.

The expansion to the facility, which was built in 1972, will allow Dennison to increase its manufacturing capabilities. The company expects to create 20 new jobs as a result of the project. RBS Citizens N.A. purchased the bonds.

"Manufacturing is a growing and important sector in Massachusetts, and Dennison’s expansion provides an example of the job opportunities manufacturers are creating in Gateway Cities," MassDevelopment President and CEO Marty Jones said in a statement. "We are pleased to offer this low-cost financing on behalf of Dennison Lubricants so the company can continue its economic contributions to central Massachusetts."

Dennison Lubricants is a manufacturer and distributor of premium lubricants that operates three facilities in Worcester, Lakeville and Gardiner, Maine. The company was founded in 1987.