Amgen Plans to Build New $300 Million Biologics Manufacturing Plant Due to Tax Reform

By February 6, 2018Shopfloor Main

(Photo Credit: Amgen)

Since tax reform was signed into law, manufacturers have detailed plans to spend their tax savings by expanding existing facilities or build new ones. Lawrence Paper Company announced a 60,000-square-foot expansion of its facility in Fremont, Nebraska; FedEx is planning a $1.5 project to expand its Indianapolis hub; Novelis is constructing a new facility in Kentucky.

Pharmaceutical manufacturer Amgen is joining the club, announcing this week that it plans to construct a new $300 million facility utilizing modern and leaner technology in the United States:

Now, motivated by U.S. tax breaks, Amgen will invest up to $300 million to build a plant in the U.S. and hire hundreds of workers. The Thousand Oaks, California–based company said it expects to name a site for the new facility in the second quarter and build a facility that will employ about 300 people when it is complete.

Amgen described the design behind its new facility as a “better way” for biological manufacturing. It built one in Singapore, but the company says that tax reform has now made it possible to build a second innovative facility in the United States:

Amgen started on the path to the new plant some years back when Amgen executives became frustrated with conventional biologics manufacturing of cell-based drugs because it was slow, inflexible and very expensive. They pointed out that plants and accompanying infrastructure would often take up more space than a dozen football fields, take years to build and often were dedicated to a single product. Changing products would later require expensive retrofitting.

Looking for a better way, Amgen scientists tested new technology using modular 2,000-liter vessels that are portable and accommodate single-use bioreactor bags, but when lined up can produce as much protein as the massive conventional tanks…

Now, with the corporate tax cut, Amgen said the economics work to erect a plant in the U.S. While cost details have yet to be released, the company said it will invest up to $300 million and hire up to 300 workers for the new facility.

Manufacturers are heading into 2018 with record-high optimism, but there is still more policymakers can do to sustain economic growth. A big investment in our nation’s infrastructure, workforce solutions, trade expansion and additional regulatory reforms will be keys to unlocking an even more successful 2018.

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