- $465-million investment expands production facility in Portage
- Timely venture positions company for long-term growth in injectable drugs market
- Creating 450 jobs qualifies investment for ‘Good Jobs for Michigan’ incentive
- MSF supports development in southwest Michigan
LANSING, Mich. – Global pharmaceutical-industry leader Pfizer will manufacture a line of injectable drugs at a two-story, 400-000-square-foot facility to be built at its Portage campus in Kalamazoo County. When completed, Pfizer claims the injectable drug processing facility will be one of the largest in the western hemisphere, while local officials point to the investment as a catalyst for further economic development throughout southwest Michigan.
“Pfizer’s investment is a major boost to the state’s pharmaceutical industry and further diversifies Michigan’s business environment,” said Gov. Rick Snyder. “I appreciate Pfizer’s long-term commitment and the economic benefits this will bring to the region and the people who live there.”
Today, the Michigan Strategic Fund board approved support of the $465-million private investment expansion of the company’s manufacturing center with a $1-million Michigan Business Development Program-based grant.
Pfizer Inc. released this conceptual drawing showing the exterior of a planned, $465 million, state-of-the-art pharmaceutical manufacturing plant that will be built on the company's campus in Portage, Michigan.
In addition Pfizer is expected to add up to 450 jobs over several years, 354 of which are anticipated to qualify for the Good Jobs for Michigan incentive. Gov. Snyder signed the job-creation package into law last July. Newly created jobs include professional and skilled labor positions. Average annual income ranges from $70,100 to $93,300.
“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,” said Kirsten Lund-Jurgensen, Ph.D., Executive Vice President and President, Pfizer Global Supply. “This investment will strengthen Pfizer’s leadership in sterile manufacturing technology and help meet growing patient demand. It also will create hundreds of highly skilled jobs, fortifying Michigan’s high-tech manufacturing environment.”
The expanded facility positions the drug maker to align with the latest Federal Drug Administration’s mandate for pharmaceutical companies to manufacture injectable drugs in sterile, self-contained production rooms. The current site makes active ingredients for Pfizer locations around the world.
Portage officials estimate tax revenue of more than $26 million and a regional economic impact of $49.2 million over the next 15 years. Pfizer is the largest employer, taxpayer and landholder in the city. In late March, the company presented site plans to the Portage City Council.
The city will provide Pfizer with an industrial facilities tax exemption, which reduces property taxes for 15 years.
Based on the size of the investment and number of jobs to be created, Pfizer qualifies for the Good Jobs for Michigan incentives, which Gov. Snyder signed into law last July. Among the inducements, Pfizer receives withholding tax capture for up to 10 years valued at $10.5 million.
The intention of the jobs-initiative package is to attract projects that result in a significant number of high-paying jobs with employees making more than the target regional wage. In addition, Good Jobs for Michigan allows for the capture of Michigan Income Taxes withheld from the Certified New Jobs created as a result of a business expansion or new location project.
Projects under this program must be completed within five years of the written agreement.
Pfizer’s latest investment is a major boost to the southwest Michigan economy, which includes world headquarters for Kellogg Company, Stryker Corporation and Whirlpool.
“Southwest Michigan First is proud to have served on this project team alongside Pfizer’s corporate and local leadership, state of Michigan and city of Portage. We are pleased that Pfizer has selected our region for investment and will continue to build on its legacy in the health sciences sector to the benefit of our local economy and workforce,” said Ron Kitchens, CEO and senior partner of Southwest Michigan First.