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JANUARY 2006

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INDIANA SPOTLIGHT


Life Sciences,
Renewable Fuel Projects
Power Up Indiana

by JOHN W. McCURRY
john.mccurry bounce@conway.com

R

esearch and development is producing
Cook Pharmica, a contract pharmaceutical manufacturer, spent $70 million to renovate the former Thomson Consumer Electronics television assembly plant in Bloomington to create its 124,000-sq.-ft. (11,500-sq.-m.) facility. At one time, the building housed the world's largest color television assembly plant.
all sorts of new technological developments in Indiana. That's translating to expansions in a variety of sectors, especially in medical devices, which is leading robust growth in life sciences in the Hoosier State.
   One of the latest in the field to grow is leading orthopedic device manufacturer Zimmer, which plans to invest US$24 million to build new labs at its facility in Warsaw. The project will add 99,000 sq. ft. (9,200 sq. m.) to the company's 528,000-sq.-ft. (49,000-sq.-m.) facility and will create 275 jobs through 2010.
   Zimmer will receive plenty of state and local incentives to stay home. These include:
    • Up to $5 million over 10 years in Economic Development for a Growing Economy (EDGE) tax credits;
    • Up to $535,000 in tax credits for certain company investments through the Hoosier Business Investment (HBI) tax credit program;
    • Up to $50,000 in training grants through the Technology Enhancement Certifications for Hoosiers (TECH) fund;
    • Local tax abatements from the City of Warsaw on the equipment it will add.

    "We conduct research and development around the world, but our largest concentration of resources is here in Indiana," said Ray Elliott, Zimmer's chairman, president and CEO, at the early November announcement. "These state incentives help to expand our efforts and made our decision easier."
NEMCOMED, a manufacturer of orthopedic implants, plans a new facility in Fort Wayne.

   An Ohio-based medical device manufacturer chose Fort Wayne as the site of its new manufacturing, engineering and R&D facility. NEMCOMED, based just over the state line in Hicksville, is building a 34,000-sq.-ft. (3,160-sq.-m.) facility and plans to create up to 160 jobs. NEMCOMED's products include orthopedic implants and instruments.
   Indiana is getting some cross-border investment down south, too. MedVenture Technology Corp. is moving its manufacturing operation and corporate headquarters from Louisville to the Northport Business Park in Jeffersonville. MedVenture, a manufacturer of minimally invasive surgical products including catheters, will bring 175 employees across the Ohio River and may employ more than 500 by 2010. As part of the state's incentive package, it is designating Northport as a Certified Technology Park.
   Cook Pharmica LLC, the newest Cook Group company, opened a $70-million facility in Bloomington in October. Cook Pharmica is a contract manufacturer that uses bioreactors to produce monoclonal antibodies. The company renovated a former Thomson Consumer Electronics television assembly plant to create the 124,000-sq.-ft. (11,520-sq.-m.) facility — at one time, the building housed the world's largest color television assembly plant. The company says some manufacturing could begin by the third quarter of 2006. It expects to create 200 jobs once it ramps up its first phase of operations.
Sentry Logistics Solutions is investing nearly $8 million and will create 30 jobs to develop a cold storage facility in Indianapolis to support the biotech and pharmaceutical industries.

   BioConvergence, a startup firm, is joining Bloomington's biotech cluster. The company, which says it will create more than 170 high-paying jobs by 2010, will invest more than $33 million to build a facility that will provide contract services to pharmaceutical and biotechnology companies. The facility will be near Baxter Pharmaceutical Solutions and the Cook Group's world headquarters.
   Moving biotech, pharmaceutical and medical device products requires a certain expertise in logistics. A new company plans to build a 81,000-sq.-ft. (7,500-sq.-m.) facility in the Ameriplex industrial park in Indianapolis that is specifically designed to serve these industries. Sentry Logistics Solutions (SLS) is investing nearly $8 million and will create 30 jobs in the cold storage facility. Jennifer Marcum, SLS project director, says the company considered numerous locations for the facility, but chose Indianapolis for the region's commitment to the biotech sector.

Tate & Lyle Sweetening
Capacity In Lafayette

B
ritish firm Tate & Lyle, best known for its Splenda artificial sweetener, is spending $100 million to boost capacity at its huge Sagamore plant in Lafayette. The plant is the company's primary U.S. production site for modified food starches. The company does not expect to add many jobs with the expansion at the 225-employee plant. Tate & Lyle acquired the facility in 1988 when it bought the A.E. Staley Manufacturing Co. About $7 million of the new investment will go toward emissions and odor reduction. The company employs another 250 people at its South Plant in Lafayette.

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