Wednesday, April 29, 2015
Norwich Pharmaceuticals, a provider of contract manufacturing and clinical research services for the pharmaceutical industry, broke ground Tuesday on a $26 million expansion that will add 26,000 square feet to its massive facility off of Route 12 in Chenango County.
The expansion, funded by Norwich Pharmaceuticals’ parent company, Alvogen, will include the acquisition and installation of new processing equipment focused on future production needs. The entire expansion is scheduled to take 18 months, with a fall 2016 ribbon cutting planned.
“To be able to expand and to invest in the future is phenomenal, not only for the employees here but for the community,” said Charlie Andrews, vice president of operations at Norwich Pharmaceuticals.
Once the expansion is complete, Norwich Pharmaceuticals will have 385,000 square feet of building space on 400 acres in Chenango County. Norwich Pharmaceuticals has 277 employees, representing an annual payroll of $25 million, company officials said. Meanwhile, Alvogen has 2,300 employees globally.
In November 2014, Norwich Pharmaceuticals announced it would eliminate about one-quarter of the plant’s then-375-person operation. Those layoffs have been completed.
Founded in 1887, Norwich Pharmaceuticals is no stranger to ownership and business strategy changes. The plant is currently producing product for certain selected third-party customers as well as developing and making product for Alvogen.
At the ceremony Tuesday, attended by employees and local politicians, Norwich Pharmaceuticals officials stressed that the upcoming expansion is the largest capital investment for the company in Chenango County since 1976.
“I think whenever somebody is building or investing, you know they’re going to stay,” City of Norwich Mayor Joseph Maiurano said.
Earlier this year, Norwich Pharmaceuticals first announced that Alvogen decided to make an investment in the Norwich plant and its equipment.
Andrews said Alvogen plans to spend $12 million this year, which will mostly fund the construction and some of the equipment. The project’s remaining $14 million will be spent in 2016.
Once the expansion is finished, Andrews said product development should increase immediately followed by an expected jump in production in 2017 and 2018.
Despite layoffs at Norwich Pharmaceuticals late last year, Andrews was optimistic Tuesday that the Chenango County plant has room to grow.
“Just physically, we’re going to need more people at a point,” Andrews said.
pressconnects.com
