Boehringer Ingelheim Closes WV Plant, Cutting 240 Jobs
August 19th, 2013 // 1:01 pm @ jmpickett
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The Boehringer Ingelheim Chemical Plant in Petersburg WV has been scheduled to close at the end of 2014. Last week, the company announced that it planned to close the plant, which will cut about 240 jobs. The plant produces active pharmaceutical ingredients, but the company says that some changes in the drug industry are the reason the plant is closing. This plant made APIs for BI’s HIV, ADHD and various cardiovascular medicines.
Petersburg officials say that hundreds of workers will be affected and the city is going to lose tax revenue in the millions of dollars. They said that from the real estate tax, they get about $385,000 and with the machinery tools purchased, the city gained about $2.5 million in tax revenue.
The spokesperson for Boehringer said that the manufacturing needs of the company’s drug network changed and the capabilities of the plant do not match with what is needed.
For example, the manufacturing buildings are designed with vessels for large production batches, and the new drugs in the pipeline are smaller batches and the many dosages have been reduced to one per day, which is cutting down on the quantities of APIs that are needed to make them.
The Boehringer Ingelheim site saw many investments and expansions in the last decade, but signs of impending closure were seen in 2012, when the firm said that one of the three buildings at the site, Synthesis 1, would be closed, which would lay off 100 workers.
Since that time, BI explored the sale of the facility but it could not locate a buyer. The company stated that it is a good plant but it is not outfitted with what BI needs at this time.
BI will start to reduce production in December this year, and will conclude the shut down in December 2014.
The company CEO said that there is an incentive plan in place that will encourage employees to stay in place through the end of 2014, and it also will offer out placement employment services and employee support for those who want to find other jobs.
