Governor Josh Stein announced today that Genentech, one of the world’s premiere biotechnology companies, will invest $700 million to build a new manufacturing plant in Holly Springs, creating 400 jobs.
"World-class companies like Genentech recognize that North Carolina is a leading state for biotechnology,” said Governor Josh Stein. “These companies know that our life science workforce is ready to help them deliver their cutting-edge medicines to the world. We are proud to welcome Genetech to North Carolina.”
Genentech, with headquarters in South San Francisco, California, is a member of Switzerland’s Roche Group (SIX: RO, ROG; OTCQX: RHHBY) and is considered the original biotechnology pioneer. For more than 40 years the company has pursued groundbreaking science to discover and develop medicines for people with serious or life-threatening diseases. Genentech’s project in Holly Springs will establish a new 700,000 sq. ft. high-volume fill-finish operation to support its existing product portfolio as well as its future pipeline, allowing the company to meet growing demand for its medicines.
"Genentech would like to thank Governor Stein and Commerce Secretary Lilley for their support and for welcoming us to North Carolina. We are thrilled to establish this relationship with the city of Holly Springs, where we will create new manufacturing and construction jobs while making a broader positive impact on the local economy and community for many years to come,” said Genentech CEO Ashley Magargee. “Our new facility will serve as an important new setting within our manufacturing network to help deliver on the promise of our company’s life-changing science and industry-leading pipeline."
“Genentech siting its first East Coast production facility in North Carolina is a gamechanger for our already strong biotechnology sector,” said North Carolina Commerce Secretary Lee Lilley. “Thanks to amazing state leadership from the North Carolina Biotechnology Center and continued investments in workforce and infrastructure, these kinds of successes breed great jobs and great therapies that make the world a healthier place.”
Although wages will vary depending on the position, the average salary for the new positions will be $119,833, compared with an average wage in Wake County of $76,643. The new positions will bring an annual payroll impact to the community of more than $50 million per year.
The company’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, the project is estimated to grow the state’s economy by more than $3 billion. Using a formula that takes into account the new tax revenues generated by the new jobs and the capital investment, the JDIG agreement authorizes the potential reimbursement to the company of up to $9,846,750, spread over 12 years and based on the creation of 420 jobs. 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.
The project's projected return on investment of public dollars is 230 per cent, meaning for every dollar of potential cost, the state receives $3.30 in state revenue. 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.
Because Genentech chose to expand in Wake County, classified by the state’s economic tier system as Tier 3, the company’s JDIG agreement also calls for moving $3,282,250 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. Even when new jobs are created in a Tier 3 county such as Wake, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state.
“Our momentum in biotech is off the charts as these new jobs and new investment come to Holly Springs,” said N.C. Senator Lisa Grafstein. “Genentech is a renowned brand in the industry, and we welcome the company to our growing family of life science partners.”
“Economic development success takes teamwork, and I’m proud of the many local, regional, and state organizations that worked hard to bring Genentech to our community,” said N.C. Representative Ya Liu. “We look forward to seeing this innovative company put down roots and grow in Holly Springs, Wake County, and North Carolina.”
Partnering with the North Carolina Department of Commerce and the Economic Development Partnership of N.C. on this project were the North Carolina General Assembly, the North Carolina Community College System, N.C. Commerce’s Division of Workforce Solutions, the North Carolina Biotechnology Center, N.C. State University, Duke Energy, Enbridge Gas North Carolina, Capital Area Workforce Development, Wake Tech, the Town of Holly Springs, Wake County, and Wake County Economic Development, a program of the Greater Raleigh Chamber.