Hand tool manufacturer Mayhew Steel Products plans to build a 33,600-square-foot building addition in Montague thanks to a $1.4 million tax-exempt industrial development bond from MassDevelopment.

The bond was issued to Deerfield Valley Realty LLC on behalf of Mayhue Steel Products, according to a statement. Deerfield Valley Realty will act as the borrower.

Mayhew Steel Products also plans to invest $500,000 for new equipment using other internal funds. The building addition and equipment will allow the company to modernize and consolidate some of its operations at one facility, improving efficiency and increasing capacity, according to a statement.

"Due to the growth Mayhew Tools continues to experience, the company has decided to expand its corporate headquarters and move a number of its key business facets under one roof," said John Lawless, president and owner of Mayhew Tools. "This will allow for greater efficiencies from both a production and cost standpoint."

People’s United Bank purchased the bonds.