Raleigh Chosen for Novo Nordisks New BioManufacturing Facility Novo Nordisk headquarters in Denmark

Raleigh Chosen for Novo Nordisk's New Bio-Manufacturing Facility

The company will manufacture active pharmaceutical ingredients for its diabetes care products which had only been manufactured in Denmark.

Research Triangle got a huge boost last week when Novo Nordisk AS (IW 1000/299) announced it was investing $1. 2 - $1.85 billion over the next five years to build a new bio-manufacturing facility.

“This billion-dollar decision by Novo Nordisk more than doubles the size of its North Carolina workforce and underscores the Research Triangle’s global leadership in bio-manufacturing, said Governor Pat McCrory. 
Denmark-based Novo Nordisk, which employs 39,700 people across 75 countries, manufactures insulin and related diabetes treatment. The new North Carolina plant will manufacture active pharmaceutical ingredients for its diabetes care products. Previously, the company had manufactured its active ingredients only in Denmark.

The new plant will be located in Clayton near the current plant, which opened in 1996 and has since undergone several expansions. More than 700 people at employed at the Clayton plant.

“For some time, we have been evaluating several options to bring more capacity into the United States because of this great need for diabetes medicines,” said Jesper Høiland, president of Novo Nordisk Inc. USA.

“After a thorough evaluation of multiple sites and an extensive vetting process, Clayton ended up being our preferred location. “We already have a large and very professional organization here, and have been impressed by the excellent collaboration we have had with this city, county and state leadership, and appreciate the incentives they have secured in connection with this investment."

An award from the state’s Job Development Investment Grant program to Novo Nordisk helped make the project possible.  Novo Nordisk is eligible to receive up to twelve annual reimbursements equal to 75% of the state personal income tax withholdings from the eligible new jobs created since the date of the initial award.  Over 12 years, the company could aggregate benefits of $15.8 million upon the creation of approximately 700 jobs.

The project was also made possible by a performance-based grant from the One North Carolina fund of up to $1 million. The One NC Fund provides financial assistance, through local governments, to attract business projects that will stimulate economic activity and create new jobs in the state. “A community needs well-trained workers in order to attract these kinds of jobs,” said State Senator Buck Newton. “Johnston County invested early on in a bio-manufacturing workforce pipeline that enables it to compete at the global level."

Numerous partners helped support the project. They include Duke Energy, the North Carolina Biotechnology Center, North Carolina Community College System, the North Carolina Department of Transportation, Johnston County, the Johnston County Economic Development Corp. and the Town of Clayton.

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