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GEN News Highlights : Jun 15, 2011

APP Pharma to Plug $38M into Expanding NY Manufacturing Site

The two-year project is designed to increase production of injectable genetic drugs.

APP Pharmaceuticals plans on investing $38 million to exapnd a manufacturing facility in Grand Island, NY, to increase its production of injectable genetic drugs. It will thus add 90 jobs to its existing workforce of 580 at the plant.

APP, a wholly owned subsidiary of Fresenius Kabi Pharmaceuticals Holding, will expand its production site by 13,000 square feet and add six new production lines for injectable products. The expansion is anticipated to begin this month and take two years to complete.

At Grand Island, APP manufactures a variety of injectable pharmaceutical products for the North America market. The products encompass four therapeutic areas: anti-infectives, critical care, analgesia/anesthesia, and oncology.

“Through the expansion, the site will significantly contribute to the continuous local supply of high-quality injectable generics for the U.S. and Canada,” states Michael Schönhofen, president, science, production, and technology for Fresenius Kabi.

Based on its promise of the new and retained jobs, APP has won nearly $1.2 million in tax credits over five years through New York state’s Excelsior Jobs Program; 2,000 kW of lower-cost power through the state Power Authority; and local property tax, sales tax, and mortgage tax abatements through the Erie County Economic Development Corp.

APP owns two manufacturing plants in Grand Island—one of 210,000 square feet, the other 148,000 square feet—as well as 120,000 square feet of warehouse and administrative space.