PUERTO RICO SPOTLIGHT
From Site Selection magazine, March 2007

 
 
'Biotech Island'
Notion Gains Currency


Three major investments in this key sector advance the
governor's knowledge- based- economy agenda.



Pall Corp.
Eric Krasnoff (left), chairman and CEO of Pall Corporation, and the Hon. Anibal Acevedo- Vila, governor of the Commonweath of Puerto Rico, announce the planned expansion of Pall's Life Sciences manufacturing plant in Fajardo, Puerto Rico.
T
he life science industry sector on Puerto Rico saw significant investment in 2006, beginning with Amgen's four- year, US$1 billion expansion at its Juncos complex, which was announced in February of that year (see the Life Science Industry Spotlight in the March 2006 issue). The investment was slated to create 500 new jobs at the facility by 2010. An Amgen center in Cork, Ireland, saw a similar investment early 2006, and R&D centers on both U.S. coasts and the United Kingdom were infused with new R&D investments. In September 2005, the Juncos facility had been licensed for bulk manufacturing of proteins that reduce chemotherapy- related infections.
   But there was more investment to come later in 2006, particularly in October. Pall Corp. announced then that it is expanding its manufacturing operations in Fajardo and establishing a Life Sciences Center of Excellence. Pall, which makes filtration, separation and purification systems for pharmaceutical and biotechnology companies and other users, will invest $58 million and create more than 250 new, full- time positions within the next few years.
   The expansion, which is scheduled for completion in July 2008, includes $17.4 million for the construction of physical facilities (warehouse and clean- room space) and $40.6 million for machinery and equipment. Pall currently occupies 230,000 sq. ft. (21,370 sq. m.) in three buildings; the expansion will add 106,000 sq. ft. (9,850 sq. m.).
   "Puerto Rico's attractive business climate and strong commitment to developing biopharmaceutical manufacturing capability are key factors in bringing numerous drug and biotechnology companies to the island," noted Eric Krasnoff, Pall's chairman and CEO, at the October 3rd announcement. "Expanding our operations in Puerto Rico is an important part of our strategic approach of aligning with customers worldwide and increasing production in lower- tax- rate jurisdictions."

'Small Size, Big Talent'
   Gov. Anibal Acevedo- Vila could not have been happier about Pall's expansion on Puerto Rico. The governor is working to transform the island's economy into a more knowledge- based economy with the biotech sector front and center. "This is why all the efforts of my Administration are targeted to transforming this native land, which is small in size, but big in talent and capability in the 'Biotechnology Island,'" he explained at the Pall expansion announcement.
   Another biotech milestone was reached in October 2006, when Eli Lilly & Co. inaugurated its Humalog insulin manufacturing plant in Carolina, Puerto Rico; construction began in July 2002. The facility is part of Lilly's $1.2- billion investment in the island. A chemical synthesis plant in Guayama was in start- up mode at year- end 2006; it manufactures active ingredients for other Lilly products.
   In the IT sector, Microsoft launched an expansion program creating 94 new jobs at its replication plant in Humacao, where DVDs are made for distribution in the Americas. Among the products produced there are Microsoft's new Windows Vista and Office 2007 software – the plant can produce 87 million CDs and DVDs annually. The $66- million expansion will result in the addition of 123,000 sq. ft. (11,400 sq. m.) of new space.

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