DelGrosso Foods Inc. in Tipton has been approved for a state low-interest loan designed to promote and retain industries.

The spaghetti and pizza sauce manufacturer will receive a $2 million, 15-year loan from the Pennsylvania Industrial Development Authority at a 2.5 percent rate. The loan will flow through the Altoona-Blair County Development Corp. for the acquisition and renovation of a 160,220-square-foot manufacturing building in Antis Township.

The building near Pine­croft formerly was a Cenevo commercial envelope factory. Cenevo ceased operations at that plant last year.

DelGrosso is outgrowing the capacity of its current facility. The building will initially serve as warehousing space but will be transformed into a new production facility within two years. The project is expected to create nine full-time jobs and retain 104 positions over the next three years, according to a release from Gov. Tom Wolf’s office.

DelGrosso produces more than 300 stock and custom formulas for dozens of “private label” customers, which include major grocery chains and several national pasta sauce and salsa brands. Additionally, the company’s ultra-premium sauce line, La Famiglia DelGrosso, has experienced rapid growth since its inception in 2006 and has given the company a national presence in the expanding specialty and natural foods segment.