Fresenius Kabi's Pharmaceutical Manufacturing Facility Expansion, Melrose Park, Illinois, United States of America

Expand pharmaceutical site Melrose Park

German pharmaceutical company Fresenius Kabi announced a proposal to expand its pharmaceutical manufacturing capabilities at Melrose Park village site in Illinois, US.

Announced in August 2016, the expanded facility will be used for the production of generic sterile injectable pharmaceuticals used in hospitals and clinics across the US.

Construction on the project will commence this year and full operations are expected to commence by 2026.

The expansion will create new jobs for construction and highly skilled workers in Melrose Park.

Location details of the expansion project

New buildings will be constructed in close proximity to Fresenius Kabi's existing plant, built in 2008 at 2020 N. Ruby St. They will be connected to the 124,267ft² old manufacturing plant.

The existing manufacturing plant at Melrose Park is located in the outskirts of Chicago, five miles away from the O`Hare International Airport. It is located in the general industrial area and employs approximately 700 people.

The plant currently produces a wide range of generic injectable medicines for the treatment of critically and chronically ill patients.

Details of Fresenius Kabi's manufacturing facility expansion

Fresenius Kabi will add four new buildings, with a total floor space of 130,000ft². The facility will include space for highly automated manufacturing, offices, warehousing of materials, and utilities.

The expansion will boost the production of injectable drugs used for anaesthesia, pain management, cancer treatment, and eliminating infections. The project will be completed in compliance with the latest regulatory and quality requirements.

The new facility will be equipped with state-of-the-art urban manufacturing campus, including fully-automated aseptic filling lines and sophisticated isolator technology, as well as expanded freeze capabilities and formulation areas. It will also include a dedicated warehouse for raw materials and components, alongside an administration building, with a conference centre, laboratories, office spaces, and a cafeteria.

Financing for the expansion

The multi-stage, multi-year project is expected to be completed in ten years, with an estimated investment of $250m.

Fresenius Kabi is expected to receive $15m in tax-increment financing subsidies from Melrose Park village if it spends at least $80m on the expansion. The company is also expected to obtain subsidies for water usage, while Cook County will offer a 12-year property tax reduction.

Fresenius Kabi will also receive state tax credits for the expansion from the Illinois Department of Commerce and Economic Opportunity.

Marketing commentary on Fresenius Kabi

Headquartered in Germany, Fresenius Kabi is a global healthcare company engaged in the development of medicines and technologies for infusion, transfusion, and clinical nutrition.

Fresenius Kabi's US headquarters is located at Lake Zurich, Illinois. The company's pharmaceutical manufacturing centres are located at Bensenville, Skokie, Lake Zurich, and Melrose Park in Illinois. It also has manufacturing sites in New York, North Carolina, and Pennsylvania.

The company's US manufacturing sites mainly focus on the development of pharmaceuticals, but also manufacture medical devices and clinical nutrition products. Fresenius Kabi has a total workforce of approximately 2,500 people across the country.