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Cuomo announces expansion of APP Pharmaceuticals on GI

by jmaloni
Wed, Jun 15th 2011 10:55 am

Gov. Andrew M. Cuomo and Empire State Development Thursday announced that APP Pharmaceuticals Inc., a supplier of injectable pharmaceutical products in North America, will expand in Grand Island, adding 90 new jobs to its existing 580-employee workforce and investing $28 million to renovate its manufacturing facility in Erie County.

"The retention and expansion of APP Pharmaceuticals in Western New York proves that New York state can and will compete to preserve and create quality jobs," said Cuomo. "As we continue to work towards a more business-friendly New York, we must build on the assets of our regions. APP Pharmaceuticals lends itself well to the growing life sciences industry cluster in Western New York, and I am proud that this world-class company continues to call New York home."

"At the Grand Island facility we have longstanding expertise in the production of injectable generics," said Frank Harmon, executive vice president and chief operating officer at APP Pharmaceuticals. "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."

Empire State Development, the New York Power Authority, and the Erie County Industrial Development Authority will provide the company, a wholly owned subsidiary of Fresenius Kabi Pharmaceuticals Holding Inc., with financial incentives. ESD will provide $1,216,395 in Excelsior Jobs Program tax credits over a five-year period, while NYPA will assist by bringing power costs in line with other out-of-state locations.

APP's investment includes enlarging the manufacturing site by 13,000 square feet and adding an additional six production lines for injectable products. Expansion measures are anticipated to last two years, with work on the site beginning in June.

APP offers products used in hospitals, long-term care facilities, alternate care sites and clinics. At the Grand Island facility, the company manufactures a variety of injectable pharmaceutical products for the North America market, which encompasses four therapeutic areas: anti-infectives, critical care, analgesia/anesthesia and oncology.

The expansion will increase APP's manufacturing capabilities of injectable generics, enabling the company to better meet the steadily growing market demand for these products in the future.

"These quality jobs are of critical importance to Western New York as it continues to successfully grow the important life sciences industry sector," said Empire State Development president, CEO and commissioner Kenneth Adams. "In addition, APP Pharmaceuticals' expansion will have a far-reaching impact as it is also a supplier to other life science companies in the region, including many at the Buffalo Niagara Medical Campus. I am pleased ESD could be a part of the company's decision to remain in Grand Island."

"ECIDA has had a long history with APP and its predecessors," said ECIDA Executive Vice President John Cappellino. "This will be our seventh project, which over the years has resulted in over $87 million in capital investment and the creation of 230 new jobs. This is a great example of how local incentives help companies grow, invest and create jobs in our region."

"We are extremely pleased that this project is moving rapidly toward completion," said Grand Island Town Supervisor Peter McMahon. "APP is a great corporate citizen and a good neighbor. We recognize the important roles played in this success by everyone, including Gov. Cuomo, Empire State Development, ECIDA and the Town of Grand Island's Chamber of Commerce and Economic Development Advisory Board."

"The Grand Island facility forms part of a global supply chain network that provides pharmaceutical products to the U.S. and Canada," said Dr. Michael Schönhofen, president of science, production and technology at Fresenius Kabi. "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 U.S. and Canada."

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