A banner day in Michigan’s Great Southwest for Pfizer’s projected new 400,000 square foot facility to be built at its Portage campus in Kalamazoo County. The global pharmaceutical-industry leader will manufacture a line of injectable drugs at the new two-story, 400,000-square-foot facility slated to be built there, which, when completed, will be one of the largest in the western hemisphere. Today’s final approval is being hailed by local officials as an investment that will act as a catalyst for further economic development throughout southwest Michigan.
Gov. Rick Snyder says, “Pfizer’s investment is a major boost to the state’s pharmaceutical industry and further diversifies Michigan’s business environment.” He adds, “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.
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, with average annual incomes ranging from $70,100 to $93,300.
Dr. Kirsten Lund-Jurgensen, Executive VP at Pfizer and President of Pfizer Global Supply says, “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.” She adds, “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.”
Congressman Fred Upton was elated with the news, saying, “This is huge news for our community. Having met directly with Pfizer leadership and other local folks about this a year ago, today truly is a great day. We’re all very excited to see this community partnership prosper.” Upton adds, “As CEO Ian Read said himself, this overall effort would not have happened without tax reform. Lowering the rates has directly led to increased investments here in Southwest Michigan. Medical innovation is also on the rise thanks in part to 21st Century Cures. As a result, we’re seeing growth and good-paying jobs returning to Michigan,” and he concluded, “We must continue working together to ensure Southwest Michigan remains a premier place to attract this sort of manufacturing, innovation, and jobs.”
The expanded facility will position 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.
Ron Kitchens, CEO and Senior Partner at Southwest Michigan First says, “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.”
