Laboratorios Hipra, a Spanish veterinary pharmaceutical company, is planning to build a $90 million manufacturing plant as its US headquarters in Ames, Iowa, starting the fall of 2011. A research and development unit is also included in the plan, and production in the plant should start by 2014.
Government incentives recently approved funds for the construction, sweetening the deal for the plant that was proposed for the Iowa State University Park. The incentives consist of almost $149,000 of forgivable loans, and a $475,000 grant from the Iowa Economic Development Board, according to the Des Moines Register.
High-Quality Jobs Program
The funds earmarked for Hipra are part of a "high quality" jobs program, Kanan Kappelman, the marketing manager for the Iowa Department of Economic Development, told the Ames Tribune. The new manufacturing plant will create at least 60 jobs in the area. State rules dictate that the company must pay its employees an average of $20.84 an hour.
Hipra, based in Spain, researches, develops, produces and sells pharmaceuticals for farm animals. Conducting business in 19 countries, the company focuses on preventing diseases in food producing animals.
Although the company scouted for other locations in the US, the Iowa location was better suited for the Spanish company, because there is an existing focus on and infrastructure for animal healthcare. Other municipalities competed to attract the company, but the existence of Iowa State University's College of Veterinary Medicine and the National Centers for Animal Health in Ames, likely made the Ames location more desirable.
The company's new R&D unit will work to create animal vaccines, and will collaborate with universities from all over the United States. About 20 people will be hired to work in the unit in the first phase of its development.
Key Players – Veterinary Health Market
- Abaxis, Alpharma, BASF, Bayer Animal Health, Biocurex, BioVet, Boehringer Ingelheim, Elanco Animal Health, Janssen Pharmaceutica, Merck, Neogen Corporation, Novartis Animal Health, PETCO Animal Supplies, Pfizer Animal Health, Randox, Sanofi-Aventis, Teva Pharmaceutical Industries