Cambridge Major Labs to expand Germantown plant

Cambridge Major Laboratories Inc., a supplier of comprehensive pharmaceutical development and manufacturing services, is investing more than $20 million in its Germantown plant.

The project will include a new administrative headquarters, as well as an expansion of the company’s research and development and manufacturing capacity to service the global pharmaceutical industry. The expansion, which is scheduled to be completed by the end of 2015, is expected to create 75 new jobs over the next three years.

CML recently joined with AAIPharma Services Corp. to form a supplier of comprehensive pharmaceutical development and manufacturing services. With more than 800 employees operating out of seven sites in the United States and Europe, the combined capabilities include API development and manufacturing, solid state chemistry,  formulation development, analytical development and testing services, clinical and commercial finished dosage form manufacturing (solid dose and parenteral), packaging and stability services.

“We are pleased to be expanding our pharmaceutical services presence and capabilities in Wisconsin,” said Stephan Kutzer, chief executive officer of AAIPharma Services and CML. “Wisconsin’s strong base of research universities and talented workforce, combined with the support of the State of Wisconsin, Washington County and the Village of Germantown, contributed to our decision to make significant additional investments in our active pharmaceutical ingredient operations in Germantown.”

“This project demonstrates CML’s commitment to increasing its research and development efforts in Wisconsin as the company continues to serve the pharmaceutical industry by developing and manufacturing active pharmaceutical ingredients (APIs) for life-saving drugs,” said Gov. Scott Walker. “The center also will provide dozens of new family-supporting jobs in Washington County as CML adds new scientists, engineers and other professionals to its staff.”

“Partnering local and state agencies to fuel CML’s expansion demonstrates our focus on leveraging  the unique capabilities of each entity in making a decisive difference for existing growth companies and job creators in Washington County,” added Christian Tscheschlok, executive director of Economic Development Washington County. “By investing in both CML and its future workers at this important juncture in the company’s evolution, EDWC and its partners didn’t hesitate to maximize this opportunity for the company’s successful growth.”

To support the project, the Wisconsin Economic Development Corporation has authorized up to $800,000 in Jobs Tax Credits for the company over the next three years. The actual amount of tax credits awarded will depend upon the number of jobs created during that period.

“Wisconsin, thanks in large part its strong university system, already is a leader in research and development in many areas, including pharmaceuticals,” said Reed Hall, secretary and CEO of the WEDC, the state’s lead economic development organization. “CML is continuing to advance R&D in the state by making this kind of commitment, and we’re pleased that WEDC is playing a major role in establishing the new center.”

The Wisconsin Department of Workforce Development also recently issued its intent to award CML a $400,000 Wisconsin Fast Forward worker training grant. The grant will support the training of more than 250 existing and new employees through a new, industry-specific training program that embeds career development with continuous improvement and learning.

“The Department of Workforce Development supports innovative training solutions that help workers develop skills that are in demand by employers,” DWD Secretary Reggie Newson said. “These are the kinds of innovative programs that make Wisconsin a leader in addressing the skills gap and ensuring a talent pipeline for employers in our state.”

The Village of Germantown and Washington County joined forces to provide a $280,000 loan through the county’s Attraction Fund that allows for principal forgiveness should CML meet certain jobs and new investment performance criteria. If those criteria are met, the loan will be repaid with revenue generated by an existing Tax Increment District. The county also provided a $200,000 low-interest loan from its County Impact Revolving Loan Fund. In addition, the village provided incentives not to exceed $378,000.

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