A Syracuse company that makes cow bedding out of recycled paper mill sludge has gotten a hand from city government.

The Syracuse Industrial Development Agency awarded a $40,000 tax exemption to Syracuse Fiber Recycling for sales taxes on construction materials. The company is renovating a 40,000 square-foot building and building a 4,000 square-foot addition at a cost of $759,000. Company officials it will boost their production and increase their customer base by 25 percent. It will also create two or three new jobs at their Willis Avenue plant. The company uses recycled paper sludge from mills like Rock-Tenn in Solvay.