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| The Pfizer logo is seen at their world headquarters in New York, April 28, 2014. Photo: REUTERS/Andrew Kelly |
By Himanshu Goenka, International Business Times
Pharmaceutical company Pfizer announced Tuesday it would increase its presence in Michigan, with an investment of $465 million to set up a new production facility in Portage, Kalamazoo County. The drug manufacturer, widely known as the maker of Viagra, will also create over 450 jobs “over the next several years,” it said, as a part of its previously announced decision to increase manufacturing in the United States.
[post_ads]“This investment is part of our overall plan announced in January to invest approximately $5 billion in U.S.-based capital projects as a result of the enactment of the Tax Cuts and Jobs Act. During the next six years, we expect to invest approximately $1.1 billion in Kalamazoo County — which is in addition to the $1 billion we have invested in the site over the past decade,” Ian Read, chairman and CEO of Pfizer, said in the company’s statement.
At the announcement ceremony at Pfizer’s existing plant in Portage, Michigan Gov. Rick Snyder said in a separate statement: “Today’s projects will fuel new economic activity across Michigan, strengthen communities, and create well-paying jobs for our residents. Pfizer’s investment is a major boost to the state’s pharmaceutical industry and further diversifies Michigan’s business environment.”
“I appreciate Pfizer’s long-term commitment and the economic benefits this will bring to the region and the people who live there,” he added, according to Pfizer’s statement.
The average annual income for the new jobs that will be created range from $70,100 to $93,300. The state has given Pfizer a total of $11.5 million in tax incentives — $1 million performance-based grant under the Michigan Business Development Program and $10.5 million through Good Jobs for Michigan that Snyder signed into law in July 2017.
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The new production facility would be spread over 400,000 square feet, and would produce injectable medicines. Groundbreaking for the new facility is expected in 2019, with production of drugs in a sterile environment expected to start is 2024, once the facility, called Modular Aseptic Processing, receives validation from regulators.
“Sterile drug product manufacturing is incredibly complex. This contemporary facility will combine cutting-edge technology and a highly talented workforce to assure we remain a trusted and reliable supplier of these therapies to patients,” Ron Perry, site leader for the Portage plant, said in the statement. The existing plant already employs over 2,200 people.
At the close of trade Tuesday, Pfizer’s stock was up $0.49, or 1.32 percent higher on the New York Stock Exchange, outperforming most other pharmaceutical stocks during the day’s trade.
