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A digital printing plant in Newark is laying off its 116 employees as it looks to expand its growing operation outside of New Jersey.

An executive with Mimeo.com tells NJ Advance Media that the company is looking to expand in Memphis, Tenn. or somewhere else in the U.S.

“We’re a smaller company and frankly the tax rates are very expensive in New Jersey,” Mimeo CEO John Delbridge said.

“Other cities, municipalities, and states are offering a lot of incentives that make it very appealing to set up operations in those locations,” he added.

Mimeo opened a 75,000-square-foot production facility and data center in 2008. It previously received about $49,900 from the New Jersey Economic Development Authority as part of the Business Employment Incentive Program for companies that were creating jobs in the state. It is still owed $144,000 from that grant, New Jersey Advance Media reported.

The company, however, could be asked to return the grant dollars it has received to NJEDA, since it did not maintain a minimum level of jobs in the state for 15 years.

“We’re making sure that the impact will be as minimal as it will be,” Delbridge said of the layoffs, which are effective on July 7.