< Previous166 JANUARY 2024 SITE SELECTION F uture predictions within the health care fi eld can send a chill down the spine of both industry professionals and patients around the nation. e Offi ce of Emerging erapeutics reported in that the cost of by ALEXIS ELMORE alexis.elmore@siteselection.com Think Ahead to STAY AHEAD Delaware’s city of Newark snags new expansion investments in leading industries. Photo courtesy of State of Delaware/Peter Miller Delaware STATE SPOTLIGHT168 JANUARY 2024 SITE SELECTION specialty drugs hitting the market has increased by % since the start of the s. ese high-cost medications are actively needed and sought out by millions to treat complex medical conditions, including cancer. At the same time that medication availability and need are on the uptick the American Medical Association predicts that the U.S. faces a workforce shortage to the tune of , physicians over the next years. Many states and businesses are on the move to craft solutions to avoid falling behind on workforce needs. Delaware is one of them. When the Biden-Harris Administration and the U.S. Department of Commerce’s Economic Development Administration announced their Tech Hub designations in October , Delaware was selected to participate in the Greater Philadelphia Region Precision Medicine Tech Hub. is Tech Hub additionally encompasses New Jersey and Pennsylvania, who will work alongside the state to build upon its life sciences assets and focus on R&D within biotechnology, medical technology, genomics and synthetic biology. “Delaware was included in the Ben Franklin Technology Partners of Southeastern PA’s Precision Medicine Tech Hub recently announced by the EDA,” says Delaware Prosperity Partnership Vice President of Business Development Becky Harrington. “Delaware is a health care and life sciences hub and off ers a supportive innovation ecosystem and a competitive environment for expanding and new businesses. And our location along the I- corridor between Washington, D.C., Philadelphia, Princeton and Boston creates an attractive opportunity for evolving companies looking for a cost-eff ective place to grow their business.” Given the urgent predictions about state of health care, the time to act begins now. A One-Stop-Shop Evernorth Health Services is doing just that. Having operated in New Castle, Delaware, since through its Accredo specialty pharmacy facility, the company now looks to build a powerhouse to meet the current and future needs of its market. “Our new facility in Delaware will help us meet the growing demand and need for specialty medications, which have risen by % over the past two decades. Evernorth is a leader in specialty pharmacy, dispensing millions of medications to patients and providers every year,” says Evernorth Health Services Pharmacy President Matt Perlberg. “As more complex medications come to market in the BY THE NUMBERS DELAWARE Higher Ed. R&D Expenditure in $000s: 397,123 Number of NCRCs: 430 | Percent Improved 2020–21: 0.47% Business Tax Climate Rank Change 2021–2022: -5 Industrial power cost per kWh: $8.79 Total Rev. as Share of Total Expenses, FY 2004-19: 99.6% 2021 Workers’ Comp Index Rate: 1.34 Selected Top Projects by Capital Investment COMPANY CITY INVESTMENT $M Agile Cold Storage Claymont 170 Accredo Health Group New Castle 89 Agilent Technologies Newport 22 Compact Membrane Syst. New Castle 6 ILC Dover Frederica 6 Source: Conway Projects Database SITE SELECTION JANUARY 2024 169 years ahead, our expanding location in Delaware, which will house both an Accredo specialty pharmacy and a CuraScript SD distribution center, will enable us to more efficiently and effectively distribute these lifesaving medications to individuals and providers throughout the country, particularly in the Northeast.” To make this happen, the company has invested more than $89 million to leave behind its former 34,000-sq.- ft. Accredo facility to move just 13 miles away to its new 200,000-sq.-ft. Newark specialty pharmacy and distribution center. A site big enough to encompass the company’s needs was a critical factor in the site selection process, as the company had considered looking outside of the state for this expansion. “The project came to us confidentially through a national site selector who was tasked with evaluating options for the company’s expanding specialty pharmacy business. The company considered expanding their existing operations in Delaware or to grow in another location,” says Harrington. “Their consultant already knew a lot about Delaware and was equipped with information we needed to help assist the company as they considered their location options.” Not only did Delaware have a site but grant funding came in handy as well to secure the deal. The Delaware Prosperity Partnership supported the investment with a Jobs Retention Grant, a Capital Expenditure Grant and a matching Training Grant, all of which the company plans to take advantage of. “Delaware’s support of this expansion will retain a valued employer and further contribute to the state’s economy by creating new jobs and adding new capital investment,” says Harrington. Evernorth will retain its New Castle team of over 80 pharmacists, pharmacy technicians, warehouse associates, operations staff and others in this expansion. Perlberg says that the company looks forward to deepening its 16-year ties to the community by adding over 100 jobs within these roles over the next few years. “These employees are dedicated to supporting patients diagnosed with some of the most rare and complex conditions known today, as well as providers who help treat these patients,” says Perlberg. “We anticipate more than doubling the number of Delaware employees at the Newark facility over the next several years.” Evernorth’s recommitment to the state sends a positive signal to the future of life-saving work that is made possible in the state. “ e fact that Evernorth and Accredo decided to expand their operations and double their size in Delaware confi rms the state’s strength in attracting life sciences to the state. is project will add new high- paying jobs and further contribute to Delaware’s life sciences economy and ecosystem,” says Harrington. Room For More Newark meets the needs of more than just one industry. In November , Delaware anchor employer DuPont opened the doors to its new $ million manufacturing facility that will help the company meet growing demand for semiconductor and industrial sectors. Named the Tralee Park Annex, the new site introduces a fi tting layout and space to support new manufacturing We anticipate more than doubling the number of Delaware employees at the Newark facility over the next several years.” — Matt Perlberg , President, Evernorth Health Services Pharmacy We anticipate more than equipment and a high-end ISO Class 6 Cleanroom. Here the company will expand its Kalrez® perfluoroelastomer parts capacity, allowing for faster production and more effective sealing for chemical processes and semiconductor chip manufacturing. “We are thrilled to open this new state-of-the-art facility to support the growth of our customers,” said Brian Ammons, global business director for Kalrez®. “We are committed to partnering with our customers on innovation and pride ourselves on driving operational excellence and delivering supply reliability and consistent superiority in quality performance. The Tralee Park Annex is a prime example of how we are delivering on these core competencies. This facility also advances our sustainability agenda as it integrates a state-of-the-art energy, IT infrastructure and building layout that minimizes energy consumption and maximizes efficiency and productivity.” The expansion creates 50 new jobs for the region within operations, maintenance, engineering and more. Many of these roles require a background in STEM, which the company is confident in filling having operated in Delaware for more than 220 years. 172 JANUARY 2024 SITE SELECTION Michigan STATE SPOTLIGHT B acked by a nearly $ million investment, Toyota Motor North America (TMNA) is constructing a new automo- tive battery lab at its North American R&D headquarters near Ann Arbor in York Township, Michigan. Planned to open in , the new lab will evaluate batteries for electric and electrifi ed ve- hicles, ensuring the performance, quality and durability of each product. Beyond battery development, other lab activities will include evaluations using Level and Level charging as well as connectivity to power sources and infrastructure. In addition to support- ing Toyota’s current battery production line, the lab’s engineers will also explore concepts for future battery and product designs, which have the potential to contribute to the development of new electrifi ed vehicle architectures. “ is new investment in our North American R&D operation, which has been a key pillar of the Michigan auto- motive industry for more than years, shows Toyota’s directional shift towards electrifi cation for all,” said Shinichi Yasui, executive vice president of TMNA Research and Development, in a state- ment. “By adding these critical evaluation capabilities around automotive batteries, our team is positioned to better serve the needs of our customers, including Toyota Battery Manufacturing North Carolina and Toyota Motor Manufacturing Ken- tucky, the latter of which will soon be as- sembling the recently announced all-new, three-row, battery electric SUV.” Michigan-Made Power Like Toyota’s R&D headquarters and six other facilities across Washtenaw County, its new expansion will also be enrolled in Detroit-based DTE Energy’s MIGreenPower program, the largest voluntary renewable energy program in the nation. is initiative enables DTE’s residential and business customers to de- rive a greater percentage of their electric- ity from local wind and solar projects. In April, Toyota announced its -year by LINDSAY LOPP lindsay.lopp@siteselection.com A rendering of Toyota’s new $50 million automotive battery lab at its North American R&D headquarters in York Township, Michigan. Image courtesy of Toyota Motor North America BY THE NUMBERS MICHIGAN Higher Ed. R&D Expenditure in $000s: 3,087,007 Number of NCRCs: 648,987 | Percent Improvement 2022–2023: 0.47% Business Tax Climate Rank Change 2023–2024: +1 Industrial power cost per kWh: $8.33 Total Revenue as Share of Total Expenses, FY 2007-2021: 101.9% 2023 Workers’ Comp Index Rate: 1.00 Selected Top Projects by Capital Investment COMPANY CITY INVESTMENT $M Ford Motor Co. / Contemporary Amperex Technology Co. Marshall 3,500 LG Energy Solution Holland 3,000 Payload CMS Grand Rapids 875 Stealth Enterprises Berrien Springs 875 General Motors Co. Flint 788 Source: Conway Projects Database Michigan-Based Partnerships Propel Toyota into a Cleaner, Greener Future SITE SELECTION JANUARY 2024 173 commitment to the program, stating that by 2026, all of Toyota’s research and development operations in Michigan will attribute 100% of their electricity use to renewable energy projects. “Renewable energy programs like DTE’s MIGreenPower program are crucial to helping companies seeking a reduced carbon footprint to achieve their goals,” said Kevin Butt, director of environmental sustainability for TMNA. “From our R&D facilities in Michigan to our production and corporate facilities across the nation, Toyota aims to achieve carbon neutrality throughout our operations by 2035.” This partnership alone is expected to have an en- vironmental impact equal to avoiding 29,000 metric tons of CO2 or greenhouse gas emissions from more than 6,200 gasoline-powered cars driven for a year. “Toyota joins a growing list of Michigan-based automotive manufacturers and suppliers who are enrolling in MIGreenPower to meet their sustainability goals,” said Brian Calka, vice president of renewable sales and project development for DTE Energy, in a press release. “Currently, more than 70% of MIGreenPower business customers are involved in the automotive sector.” As of April 2023, more than 800 businesses were enrolled in the program. Paving the Way for Partnerships Alongside collaborating with various locations in the TMNA network, this facility will partner with other North American suppliers to integrate locally manufactured battery components and materials into its range of hybrid, plug-in hybrid, fuel cell and battery electric products. Four months after Toyota announced these plans, the company signed a supply agreement with South Korea-based LG Energy Solutions for lithium-ion battery modules to be used in its battery electric vehicles (BEVs) assembled in the United States. As stated in the contract, starting from 2025, LG’s Holland, Michigan, facility will annually provide Toyota with 20 GWh of battery modules consisting of high-nickel NCMA (nickel, cobalt, manganese, aluminum) pouch-type cells. To fulfill the supply agreement, LG is investing approximately $3 billion to expand its Michigan operations and create production lines exclusively for Toyota. This comes only five months after LG celebrated placing the last beam in the Holland plant’s $1.7 billion expansion that began in March 2022. Through this project, the company constructed a 1.7-million-sq.-ft.- building to increase its battery capacity from 5 GWh to 25 GWh, five times greater than it was before. “LG Energy Solution is at the forefront of green business, promoting sustainability, electrification and innovation,” said LG Energy Solution Michi- gan President Bonchul Koo in a press release. “We have already become a contributor to the State of Michigan’s ‘championship economy.’ Michigan was a natural choice to our commitment of building an impactful global business because of its rich pool of talent, being close to the geographic epicenter of the automotive industry and its strong support. I am optimistic about realizing LG Energy Solution’s aim 174 JANUARY 2024 SITE SELECTION to achieve carbon neutral by 2050 and about creating ripple effects of environment-conscious business in Michigan and beyond. I look forward to what the future holds.” For this project, The Michigan Strategic Fund approved a package of incentives including: • A 20-year Renaissance Zone to the city of Holland, valued at an estimated $132.6 million; • Up to $36.5 million in Community Development Block Grant funds to Allegan County to reimburse the company for the purchase of machinery and equipment, with an additional $50,000 for grant administration; • A $10 million Jobs Ready Michigan performance- based grant to assist with job-related training; • A $10 million Michigan Business Development Program performance-based grant for the creation of up to 1,200 jobs. While LG did create hundreds of new jobs at the plant, in November, the company laid off 170 Holland plant employees. “As we continue our mass expansion and renovations, LG Energy Solution Michigan is transitioning and retooling some production lines from our current production facility to our second factory within our Holland site,” the company said in an emailed statement. “Less staff will be needed as some production lines are transitioned.” The company revealed that in addi- tion to this production gap, “automakers realigning the speed of the EV transition” was another contributing factor to this decision. The layoffs are set to occur in phases between December 2023 and Janu- ary 2024. Prior to the announcement, the facility employed roughly 1,500 workers. “LG Energy Solution continues to grow and has a bright future in the automotive industry,” the statement continued. “The major expansion project for our second facility is well underway. And, with the recent partnership announcement with Toyota, we will supply batteries to all five top global automakers.” DTE Lapeer solar park SITE SELECTION JANUARY 2024 175 INDEX TO ADVERTISERS For LOCATION INFORMATION or assistance in conducting a Confidential Site Search please email karen.medernach@conway.com or visit us at www.siteselection.com. PAGEPAGEPAGE Conway Data, Inc. ............................89 https://conway.com Mid-America Economic Development Council....17 http://www.midamericaedc.org Site Selection...........................IBC, 89 https://siteselection.com UNITED STATES ALABAMA Alabama Community College System..........151 http://www.accs.edu/employers Alabama Department of Commerce ............95 http://www.madeinalabama.com/next City of Opelika..............................149 http://www.chooseopelika.com Gadsden Etowah County Industrial Development Authority ......................147 https://alabamamegasite.com PowerSouth - Corporate Office................157 https://www.powersouth.com Southeast Gas ..............................156 http://southeastgas.com/growth Tuscaloosa County Economic Development Authority ......................155 http://tcoeda.com W. S. Newell & Sons, Inc. .....................153 http://www.WSNewell.com ARIZONA Arizona Commerce Authority..................49 http://www.azcommerce.com City of Buckeye Economic Development .........9 https://www.growbuckeye.com City of Goodyear.............................98 https://www.developgoodyearaz.com/lifesciences ARKANSAS Arkansas Economic Development Commission ..97 https://www.arkansasedc.com/whyarkansas CALIFORNIA City of Antioch..............................101 https://www.innovateantioch.com San Bernardino County Economic Development Agency......................22-25 http://selectsbcounty.com COLORADO Grand Junction Economic Partnership .........103 https://www.gjep.org CONNECTICUT The City of Hartford .......................70-71 http://www.hartfordct.gov Town of Newtown Economic and Community Development .....................72 https://newtown.org Town of Wallingford ..........................75 http://www.plugin2wallingford.com Town of Windham............................76 https://www.windhamct.gov/162/Economic- Community-Development DELAWARE City of Seaford..............................167 http://www.seafordde.com City of Wilmington - Mayor’s Office of Economic Development ...................170 http://www.riverfronteast.com Delaware Prosperity Partnership ..............171 http://www.choosedelaware.com First Industrial Realty Trust . . . . . . . . . . . . . . . . . . . 169 http://www.firstindustrial.com DISTRICT OF COLUMBIA Washington DC Economic Partnership ..........35 https://wdcep.com FLORIDA Duke Energy..................................7 http://locationdukeenergy.com Putnam County Chamber of Commerce........105 https://www.putnamcountychamber.com/ economic-development GEORGIA MEAG Power ...............................107 http://www.meagpower.org ILLINOIS ComEd Economic Development Department.....111 https://www.comed.com First Industrial Realty Trust ...................169 http://www.firstindustrial.com INDIANA Duke Energy..................................7 http://locationdukeenergy.com Hoosier Energy Rural Electric Cooperative.......33 https://www.hoosierenergy.com/growth KANSAS GoTopeka Economic Partnership . . . . . . . . . . . . . . 113 https://www.gotopeka.com Junction City Area Chamber of Commerce .......11 https://www.jcgced.com KENTUCKY Canadian National Railway .................IR 79 https://www.cn.ca/businessdevelopment Duke Energy..................................7 http://locationdukeenergy.com Kentucky Cabinet for Economic Development...115 http://kpdi.ky.gov Ohio County EDA ..........................IR 81 http://www.ohiocountyky.com LOUISIANA Louisiana Economic Development.............117 http://www.opportunitylouisiana.gov Southwest Louisiana Economic Development Alliance....................INSERT https://www.allianceswla.org MICHIGAN Bay Future, Inc. .............................119 https://www.bayfuture.com Flint & Genesee Economic Alliance ............173 http://www.developflintandgenesee.org Michigan Economic Development Corporation .IFC-1 https://www.michiganbusiness.org Midland Business Alliance ....................174 http://www.MBAmi.org MINNESOTA Connexus Energy............................121 https://www.connexusenergy.com MISSISSIPPI Mississippi Development Authority ............123 https://mississippi.orgNext >