Projects

Pfizer’s Sterile Injectable Production Facility, Michigan

In June 2018, Pfizer announced plans to build a sterile injectables production facility at Portage in Kalamazoo County, Michigan, US.

Project Type

Sterile injectable production facility

Location

Portage County, Michigan, US

Estimated Investment

$465m

Start of Construction

2019

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In June 2018, Pfizer announced plans to build a sterile injectables production facility at Portage in Kalamazoo County, Michigan, US.

The new sterile injectables production facility will be built with an estimated investment of $465m. It is part of Pfizer’s $5bn investment in US-based capital projects following the enactment of the Tax Cuts and Jobs Act, which reduced corporate tax to 10%.

Construction of the new facility is planned for mid-2019, while completion is scheduled for 2021. The new facility is expected to commence production in 2024, following validation by regulatory agencies.

The new plant will enable Pfizer to manufacture critical injectable medicines for patients worldwide. It will also support the company’s production and supply capacity.

The project is expected to generate approximately 450 jobs in Portage. The governing body of the Portage County estimates that the new facility will generate tax revenue of approximately $26m and have a regional impact of $49.2m over the next 15 years.

Pfizer’s sterile injectable production facility location

The new facility will be developed on a site located within Pfizer’s existing Portage campus in Kalamazoo County, Michigan.

“The facility will be equipped with multiple sterile, self-contained mobile manufacturing lines to manufacture injectable drugs.”

Pfizer selected south-west Michigan as the ideal location for the new facility due to the region’s favourable economy and manufacturing environment.

Facilities at Pfizer’s new plant in Michigan

The new sterile injectable production facility will be a multi-storeyed facility covering an area of 400,000ft². It will feature state-of-the-art modular aseptic processing technology, equipment and systems.

The facility will be equipped with multiple sterile, self-contained mobile manufacturing lines to manufacture injectable drugs. Each processing module in the facility will be entirely segregated from the remaining manufacturing lines. The design will enable Pfizer to meet with the latest US Federal Drug Administration’s directive to produce injectable drugs in sterile and self-contained production rooms.

The project is expected to require significant upgrades to the existing utilities and other infrastructure on the Portage site.

Financing and incentives

The Michigan Strategic Fund (MSF) is supporting the development by providing a $1m grant through Michigan Business Development Program, an incentive programme that creates qualified new jobs.

Portage City Council will provide the company with industrial facilities tax exemption credits, which reduces property tax for 15 years.

Pfizer will also receive withholding tax capture valued at $10.5m for approximately ten years under the ‘Good Jobs for Michigan’ programme, an incentive programme aimed at attracting large-scale projects to the state.

A total of 354 out of the 450 jobs expected to be generated by the facility will qualify under the programme.

Pfizer’s Portage site details

The Pfizer Global Supply (PGS) campus in Kalamazoo County is used to produce sterile injectable drugs, liquids and semi-solid drugs, as well as active pharmaceutical ingredients (API).

Operating since 1948, the Portage site manufactures more than 150 products, including injectable anti-inflammatory medicine Solu-Medrol.

The site employs more than 2,200 people and is estimated to have an economic impact of $2.2bn in the region.

The new sterile injectable manufacturing plant will enable the Portage site to compete globally. Pfizer is also planning to invest $1.1bn in Kalamazoo County over the next five years to increase its sterile manufacturing capabilities and meet the growing demand for its products.

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