International supplier of medicines will invest $351.6 million
CLAYTON – Grifols Therapeutics, the global healthcare company, will expand its operations in Johnston County with a new $351.6 million capital investment, creating 300 jobs, Governor Roy Cooper announced today. The company will construct a specialized blood plasma facility and logistics center at its Clayton campus.
“Companies like Grifols continue to choose expansion in North Carolina because our workforce can meet their needs of this important facility,” said Governor Cooper. “During this public health crisis, we have seen the value of manufacturing close to home and this expansion means new, life-saving medicines will be manufactured in Clayton.”
Grifols Therapeutics is a leading supplier of medicines derived from human plasma. A subsidiary of Barcelona, Spain based parent Grifols, S.A., the company has decided to expand its operations in North Carolina with a new plasma fractionation facility and logistics center at its Johnston County campus to help meet the growing demand for plasma derived medicines. Fractionation is the process of separating different components in blood plasma, to produce proteins that are essential for patients who face sometimes life-threatening conditions.
As part of Grifols commitment to society, the company is also playing a leadership role in the response to COVID-19 by developing a plasma-based antibody treatment for the disease. In partnership with the federal government, Grifols is collecting convalescent plasma from eligible COVID-19 survivors across the country. Grifols’ 13 plasma collection centers in North Carolina are participating in this important effort. Convalescent plasma from donors will be manufactured into a hyper-immune therapy specific to COVID-19 at the company’s manufacturing campus in Clayton.
“Today is a very exciting day for Grifols. We are extremely proud to expand our manufacturing operations in the state of North Carolina,” said Doug Burns, President of Grifols Therapeutics. “True to Grifols mission of improving the health and wellbeing of patients, our new state-of-the-art fractionation facility will help meet the growing demand for plasma-derived medicines in the United States and around the world. We thank Governor Cooper, Secretary of Commerce Anthony Copeland, the Economic Development Partnership of N.C., the North Carolina General Assembly, the North Carolina Community College System, Johnston County, the Town of Clayton, and the Johnston County Economic Development Office for their strong support.
Although wages will vary depending on position, the overall average salary for the new positions will be $69,032. The current average wage in Johnston County is $40,734. The state and local area will see an economic impact of more than $20.7 million from this new payroll each year.
The company currently employs more than 1,735 at its Clayton facility, which Grifols has operated since its 2010 acquisition of Talecris Biotherapeutics.
“When a company that has operated here for the past ten years is willing to undertake an expansion this significant, it speaks to their confidence in our community, our workforce and our leadership,” said Ted Godwin, chairman of the Johnston County Board of Commissioners. “Today’s announcement by Grifols also says great things about the future of our economy, as we go about putting our citizens back to work and embracing new opportunities ahead in the post-pandemic landscape.”
Clayton town leaders also expressed support for the project. “We welcome today’s exciting news and look forward to continuing to build on the very positive relationship the town has had with Grifols since 2010,” said Jody McLeod, Mayor of Clayton. “Aside from being our largest private employer, the company has been a terrific partner and advocate for our community in many ways.”
“It’s a challenging time in our state and our nation as the coronavirus pandemic impacts our lives, but today’s decision confirms the fundamentals of the North Carolina economy remain strong,” said Commerce Secretary Anthony M. Copeland. “I welcome Grifols’ vote of confidence to expand their business in our state.”
Grifols Therapeutics’ 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 12 years, the project is estimated to grow the state’s economy by $1.72 billion. Using a formula that takes into account the new tax revenues generated by the new jobs, the agreement authorizes the potential reimbursement to the company of up to $5,161,500, spread over 12 years. Payments for all JDIGs only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets. 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 Grifols chose a site in Johnston County, classified by the state’s economic tier system as Tier 3, the company’s JDIG agreement also calls for moving as much as $1,721,000 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 Johnston, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state. More information on the state’s economic tier designations is available here
“We welcome this expansion from one of our area’s major employers,” said said N.C. Senator Rick Horner. “Grifols is a valued corporate citizen and their decision to expand in Johnston County brings new energy to one of our community’s most important partnerships.”
“Many people and organizations in our community worked behind the scenes and collaborated closely to make this announcement happen today,” said N.C. Representative Donna McDowell White. “As the Chair of the Life Science Caucus in the North Carolina House of Representatives, it’s gratifying to see the important lifesaving programs Grifols provides. The research and development that will be enhanced with this expansion is especially important as we learn to live with COVID-19. Everyone in our area stands ready to support Grifols and keep Johnston County as one of the premiere regions for North Carolina’s biotechnology industry.”
In addition to the North Carolina Department of Commerce and the Economic Development Partnership of N.C., other key partners on this project were the North Carolina General Assembly, the North Carolina Community College System, the North Carolina Biotechnology Center, Johnston County, the Town of Clayton, and Johnston County’s Economic Development Office.