$250M Expansion for Melrose Park Pharmaceutical Facility | New U-Haul Location Opens

Fresenius Kabi.png

The Fresenius Kabi production facility in Melrose Park could get a $250 million expansion. | Google Maps 

Thursday, August 18, 2016 || By Michael Romain || @maywoodnews

Fresenius Kabi, the German pharmaceutical company that produces generic medical products, has announced that it plans to spend $250 million expanding its Melrose Park facility, which is located at 2020 N. Ruby St.

The expansion, which could take up to a decade to complete, is scheduled to start next year, the company said.

Fresenius officials say that the company employs at least 1,500 workers in the state, but they haven’t disclosed how many new hires will come in the wake of the expansion.

In a statement, Steven Nowicki, Fresenius Kabi’s senior VP for global operations in North America, noted that the company expects the expansion to have “positive effects” and “continued growth” that “will benefit the people and business community of Melrose Park and Illinois.”

According to a Crain’s Chicago Business report, the Village of Melrose Park will provide Fresenius with a maximum of $15 million in tax increment financing if the company puts up at least $80 million for the expansion. The village will also subsidize Fresenius Kabi’s water consumption.

In addition, Crain’s notes, the company will receive a 12-year property tax reduction from Cook County and as yet unknown amount of state tax credits.

In 2014, in anticipation of the major expansion, representatives from Kane & Co., a firm that specializes in helping companies get tax breaks and other development incentives, approached the Village of Maywood requesting that it extend the Maywood Enterprise Zone to include the portion of Melrose Park where Fresenius is located.

The expansion of the enterprise zone would have allowed the pharmaceutical company to take advantage of the various tax incentives that the zone provides businesses located within it.

If Maywood agreed to the expansion, it would realize up to $50,000 as a result of the pharmaceutical company’s expansion investment. At the time, Kane & Co. claimed that Fresenius was considering relocating its Melrose Park facility to New York if the enterprise incentive wasn’t granted.

According to an Aug. 18, 2014 memo drafted by Kane & Co. CEO James H. Kane, if Maywood agreed to the expansion and Fresenius went forth with the facility expansion, “the multi-phase project would represent a significant investment and the creation of as many as 250 full-time jobs in the local labor market area that includes Maywood.”

“The Company would expect to hire locally and train workers in the specialized FDA-required skills to produce high-quality pharmaceuticals for hospitals across North America,” the memo notes. “Entry level candidates for production, maintenance and warehousing will need to have a high school diploma, or equivalent and basic mechanical aptitude.”

The memo also estimated that the expansion project would require at least 300 jobs during the construction phase. At the time Kane wrote the memo, he claimed that the company employed 12 Maywoodians, some of whom had been at the company for 30 years.

So far, it isn’t known whether or not Maywood agreed to expand its enterprise zone to include Melrose Park. Maywood village officials couldn’t be immediately reached to comment as of press time.

More as this story develops.

New U-Haul location comes to Melrose Park

UHAUL .jpegHagen’s Automotive, 2315 N. Mannheim Rd., in Melrose Park has signed on to be a U-Haul dealer, according to a company statement.

“Every U-Haul truck placed in a community helps keep 19 personally owned large-capacity vehicles, pickups, SUVs and vans off the road,” the company noted. “Fewer vehicles means less traffic congestion, less pollution, less fuel burned and cleaner air.

“Hagen’s Automotive is a great place to become U-Haul Famous. Take your picture in front of a U-Haul product, send it in and your face could land on the side of a U-Haul truck. Upload your photo through Instagram using #uhaulfamous, or go to www.uhaulfamous.com to submit photos and learn more.”

For more local business news, ‘Like’ VFP on Facebook 

Facebook Like

 

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s