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APP invests $38m to boost injectable generics capacity

16-Jun-2011

US drugmaker APP Pharmaceuticals will invest $38m to boost its manufacturing capacity for injectable generic drugs at its facility in Grand Island.

The investment will add 13,000 sq of manufacturing space and six new production lines in a project expected to start later this month and take around two years to complete. APP, which employs 580 people at the facility, expects to hire an additional 90 staff.

The plant was built in 1970 and has undergone a number of expansions, most recently in 2005 when APP added manufacturing capability for aseptic filling and packaging for pharmaceuticals.

APP, which was bought by Fresenius Kabi AG in 2008, makes anti-infectives as well as products for critical care, analgesia, anesthesia and oncology at the site and claims that growing demand for such drugs was a key driver for the decision to invest.

Michael Schönhofen, President, Science, Production & Technology, at Fresenius Kabi described the Grand Island facility forms part of a global supply chain network that provides pharmaceutical products.

“The investment in this facility is an important step within our production strategy. Through the expansion, the site will significantly contribute to the continuous local supply of high quality injectable generics for the US and Canada.”

This was echoed by APP COO Frank Harmon, who said: “The expansion of Grand Island demonstrates our commitment to Erie County and the State of New York to remain an active employer in the region.”

Local jobs

This commitment was recognised by a number of organisations who pledged to support APP’s expansion project.

Empire State Development will provide around $1.2m in Excelsior Jobs Program tax credits over a five year period, while the New York Power Authority will assist with an allocation of 2,000 kW to bring APP’s power costs in line with other out-of-state locations.

Finally, Erie County Economic Development Corporation has also said it will supply APP with property tax, sales tax and mortgage tax abatements.

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