Explanation
BACKGROUND: The need exists to enter a Job Creation Tax Credit Agreement with Hikma Pharmaceuticals USA Inc. (“Hikma”). The Ohio Tax Credit Legislation (Section 718.15 of the Ohio Revised Code) authorizing such agreements became effective January 14, 1993 and requires the City to enter a Council-approved agreement between the City and a participating company.
Founded in 1978 in Jordan, Hikma was founded by Samih Darwazah with the purpose to make high-quality medicines accessible to the people who need them. Based on the solid foundation they have built, they are continuing to transform the lives of the millions of people they serve. Hikma focuses on three high quality businesses (Injectables, Branded, and Hikma Rx) within three core regions of the world (North America, MENA, and Europe) with a leading market position. With 29 manufacturing plants spread across 10 different countries, Hikma has been able to create a large portfolio of over 800+ products. With their current U.S. Headquarters located in Berkeley Heights, NJ, Hikma has three locations in Ohio. The company has a manufacturing and R&D facilities in both Bedford and Columbus, and a Distribution facility in Lockbourne. All coming together to make Hikma the 3rd largest manufacturer of Injectables in the U.S. and the largest manufacturing employer in Columbus.
Hikma is proposing to invest a total capital expenditure of approximately $215,700,000.00, which includes $92,000,000.00 in real property improvements and $123,700,000.00 in machinery & equipment. With this investment, Hikma is proposing to construct a 131,000 square-foot pharmaceutical storage and distribution facility as well as a 40,000 square-foot expansion to their existing facility at 1809 Wilson Road, Columbus, Ohio 43228, Parcel No. 560-138818 (the “Project Site”), to increase pharmaceutical manufacturing, increase storage and distribution, to expand R&D capabilities, and to grow their presence in the Columbus market. The prop...
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