Canadian rapid manufacturing firm Protocase plans to lease more office space at the city of Wilmington's Skyline Center than initially expected.

In August, the Wilmington City Council authorized City Manager Tony Caudle to enter into a lease with Protocase USA Inc. for approximately 3,100 square feet of office space for up to seven years. On Tuesday, the council unanimously approved authorizing Caudle to enter into an amended lease for roughly 5,100 square feet for up to nine years.

Protocase, a Nova Scotia-based rapid manufacturing and prototyping firm that serves the aerospace and defense industries, announced plans this summer to establish a presence in the Wilmington area, marking the firm's first expansion into the U.S. In the coming years, Protocase plans to establish a manufacturing facility that could employ around 400 people.

The company's updated lease would include 5,153 square feet of office space on the fourth floor of Skyline Center at 929 N. Front St. in Wilmington. The lease has an initial term of five years with the option to renew for four more years. Its initial annual cost is $108,171, according to agenda documents.

The lease changes stem from a shift in the Protocase's approach to growth in the Wilmington area, said Co-Founder Steve Lilley. Initially, the company planned a two-phase expansion, which has now shifted into a three-phased approach. 

“It became clear to us that (there are) certain elements of what we do that we can get off the ground faster than we initially thought,” Lilley said, “and it’s all about just serving our customers better.”

The first phase is establishing offices in the Wilmington area and making initial local hires – a step that's already complete, Lilley said. The company's local operations are currently based out of five temporarily leased offices at Skyline Center, and Protocase recently hired its first Wilmington-based employee, according to Lilley.

The next phase, which is set to begin shortly, involves expanding the firm’s engineering design services group and technical services group and adding some account management sales positions, Lilley said.

Protocase is working with Cape Fear Community College and the University of North Carolina Wilmington to recruit employees in the Cape Fear region, Lilley said. Once upfitted, the Skyline Center office space should accommodate up to 60 employees. 

Company officials told the Business Journal this summer that the company's expansion into the U.S. is “strategic,” allowing the company to better serve its American customers by providing more localized support.

The U.S. location will also make it easier for the firm to work in certain sectors like the aerospace and defense industries. Lilley said having a U.S. presence is especially important to clients subject to International Traffic in Arms Regulations, a set of rules that control the export of defense and military technologies.

A final step in the company’s expansion plan is establishing a manufacturing presence in the Wilmington area. Lilley said he thinks it’s still “realistic” for the company to have a manufacturing presence in the next few years, and company officials have already looked at potential manufacturing spaces in the area.

As the company builds its presence in Wilmington, Lilley said executives and other representatives from the Canadian plant will play an active role in molding local company culture.

“It has been an executive decision that we, at least over the next six months to a year, will be cycling through various staff members just to be representative of the Canadian company,” Lilley said.