APP announces $38 million expansion of New York manufacturing facility

APP Pharmaceuticals, Inc., a wholly owned subsidiary of Fresenius Kabi Pharmaceuticals Holding, Inc., announced today a $38 million expansion of its Grand Island, New York manufacturing facility.

APP's investment includes enlarging the manufacturing site by 13,000 square feet and adding an additional six production lines for injectable products. Expansion measures are anticipated to last two years, with work on the site beginning in June 2011. Currently, 580 people work at the Grand Island site and APP plans to hire an additional 90 employees within the scope of the site expansion.

As a leading supplier of injectable pharmaceutical products in North America, APP offers one of the most comprehensive product portfolios used in hospitals, long-term care facilities, alternate care sites and clinics. At its Grand Island facility, the company manufactures a variety of injectable pharmaceutical products for the North America market that encompasses four therapeutic areas: anti-infectives, critical care, analgesia/anesthesia and oncology. The expansion will increase APP's manufacturing capabilities of injectable generics, enabling the company to make a significant contribution to meeting the steadily growing market demand for these products in the future.

"The Grand Island facility has a longstanding expertise in the production of injectable generics," said Frank Harmon, Executive Vice President and Chief Operating Officer at APP Pharmaceuticals. "The expansion of Grand Island demonstrates our commitment to Erie County and the State of New York to remain an active employer in the region."

In addition, the company announced that Empire State Development will provide $1,187,763 in Excelsior Jobs Program tax credits over a five year period, while the New York Power Authority will assist with an allocation of 2,000 kW to bring the company's power costs in line with other out-of-state locations. Erie County Economic Development Corporation will provide property tax, sales tax and mortgage tax abatements.

"APP Pharmaceuticals will create good, quality jobs that will help expand the important life sciences sector of our economy and help Western New York continue its revitalization," said Empire State Development President, CEO & Commissioner Kenneth Adams. "We're pleased that Empire State Development could be a part of APP's decision to remain in Grand Island."

Dr. Michael Schönhofen, President, Science, Production & Technology, Fresenius Kabi added, "The Grand Island facility forms part of a global supply chain network that provides pharmaceutical products to the U.S. and Canada. The investment in this facility is an important step within our production strategy. Through the expansion, the site will significantly contribute to the continuous local supply of high quality injectable generics for the U.S. and Canada."