Amgen Inc., the pioneering biotechnology company, will expand its biologics manufacturing operation in Holly Springs, creating 370 additional jobs. The company intends to invest $1 billion in Wake County.
“North Carolina’s reputation as one of the world’s leading centers for biotechnology soars even higher with today’s decision by Amgen,” said Governor Cooper. “North Carolina offers everything an innovative biotech company needs to succeed, especially our highly trained, dedicated and diverse workforce which is fine-tuned to the needs of this critical industry.”
Founded in 1980 in Thousand Oaks, California, Amgen today serves millions of patients around the world suffering from serious illnesses such as cancer and heart disease. Amgen is one of the 30 companies that comprise the Dow Jones Industrial Average, with more than 27,000 employees worldwide. The company’s project in the Research Triangle area of North Carolina establishes a second drug substance manufacturing facility on its campus, helping the company satisfy long-term growth projections and most importantly, better serve patients in need of life-saving medicines.
“This expansion reflects Amgen’s ongoing commitment to innovation and the people who make it possible,” said Robert A. Bradway, chairman and chief executive officer at Amgen. “North Carolina has been a strong partner, offering the skilled workforce and forward-looking business climate we need to bring vital medicines to patients around the world.”
“I spent much of my career in the life science industry, and helping North Carolina strengthen its leadership in this industry has personally been very rewarding,” said North Carolina Commerce Secretary Machelle Baker Sanders. “The key to our success has been our continued focus on building the skilled and diverse workforce that companies like Amgen depend on every day.”
Although specific wages will vary depending on job role, the average salary of the new positions is $91,527, bringing more than $33 million of annual payroll growth to the region. The current average wage in Wake County stands at $74,866.
Amgen’s project in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of this grant, economists in the Department of Commerce estimate the project will grow the state’s economy by $3.59 billion. Using a formula that takes into account the new tax revenues generated by the new jobs, and a capital investment of $1.01 billion, the JDIG agreement authorizes the potential reimbursement to the company of up to $4,893,750, spread over 12 years.
The project’s projected return on investment of public dollars is 205 per cent, meaning for every dollar of potential cost, the state receives $3.05 in state revenue. State payments only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.
Amgen’s JDIG agreement could also move as much as $1,631,250 into a fund that helps rural communities across the state attract business in the future. When companies select a site located in a Tier 3 county such as Wake, their JDIG agreements move some of the new tax revenue into the state’s Industrial Development Fund – Utility Account. Local communities in more economically challenged areas of the state use grants from the Utility Account to build public infrastructure projects, which can improve a community’s ability to attract companies to their regions.
“It’s fantastic that a company like Amgen has put down roots in our community and already decided to expand here,” said N.C. Representative Julie von Haefen. “Holly Springs and Wake County continue to rise to the top as one of the premier locations for biomanufacturing in the world.”
“Today’s decision by Amgen is proof of the collaborative spirit our community has demonstrated since Amgen’s initial decision to locate in Holly Springs,” said N.C. Senator Sydney Batch. “We will continue to work together to support the company as it expands in Wake County.”
The Economic Development Partnership of North Carolina would like to recognize the North Carolina Department of Commerce as well as other key partners involved in this project, including the North Carolina General Assembly, the North Carolina Community College System, the North Carolina Biotechnology Center, the North Carolina Department of Environmental Quality, N.C. Commerce’s Division of Workforce Solutions, North Carolina State University, Wake Tech, Capital Area Workforce Development. the Town of Holly Springs, Wake County, and Wake County Economic Development, a program of the Raleigh Chamber.