Vaccine maker threatens state: Cough up $40M or we move (flu vaccine production plant)

Scranton Times-Tribune ^ | 1/21/2005 | Stephen Daily

[Born Conservative]

SWIFTWATER -- Swiftwater-based Sanofi Pasteur, formerly Aventis Pasteur, is threatening to transfer future development at its Monroe County site to foreign countries if the state does not commit $40 million for a sewer project the company says it needs to expand.

In a letter to Gov. Ed Rendell, Sanofi Pasteur warned that without additional sewer infrastructure, future expansions -- specifically the expansion of a $160 million flu vaccine production plant -- would shift to company locations in Canada or France. Such a transfer would cost the region future jobs and potential new contracts, the company said in the letter.

"Without the sewer line, we wouldn't have the infrastructure necessary for future developments," said Sanofi Pasteur spokeswoman Ellyn Schindler. "We feel that the letter would serve as a reminder of the critical timeline involved."

Sanofi Pasteur, which employs 1,500 people at its Swiftwater campus, wants the governor to commit to the funding by early February. It is uncertain how many new jobs would result from the vaccine plant expansion, Ms. Schindler said.

Kate Phillips, press secretary for Gov. Rendell, said the Governor's Office is working closely with Sanofi Pasteur to secure funding as soon as possible.

"We have to put together a package that involves federal, state, and local funds, but we're not there yet," Ms. Phillips said. "We're pretty optimistic we will put something together. It is a top priority for the governor."

Gov. Rendell talked to U.S. Health and Human Services Secretary Tommy G. Thompson, who pledged to find money for the project.

Ms. Phillips said the funding package will be sensible and not rushed. When asked if the governor will be able to satisfy Sanofi's February deadline, she replied: "We'll cross that bridge when we come to it."

U.S. Rep. Paul Kanjorski, D-Nanticoke, whose district includes Monroe County, said he, along with U.S. Sens. Arlen Specter and Rick Santorum, have pledged support to find complete funding for the sewer project.

"The three of us are putting a letter together that we will send to Gov. Rendell (today) to extend our support for the project," Mr. Kanjorski said. "We all feel it is essential to keep the flu vaccine plant in Pennsylvania."

While the governor has not yet finalized any funding plan, Mr. Kanjorski said a likely scenario includes a $17 million PennVest loan from the Pennsylvania Infrastructure Investment Authority, which helps fund sewer projects; $10 million from the governor's economic development fund; and $3 million from local tax increment financing.

The remaining $10 million will come from the federal government, he said.

In a statement released Thursday, Sanofi Pasteur took a less threatening and more diplomatic approach to the financial request.

"Sanofi Pasteur continues to work closely with Gov. Rendell and his staff, in addition to state and local officials, concerning financing of a regional wastewater facility to service the Route 611 corridor," the statements reads.

"To move this expansion project forward at the Swiftwater site the company would need, at a very minimum, a letter of commitment from the Commonwealth no later than early February, or shortly thereafter, for funding of the sewer project."

Monroe County Industrial Development Authority Executive Director Chuck Leonard has been working with taxing bodies, local Sanofi officials and the Governor's Office to put together financing for the sewer improvements.

"We want to give the local Sanofi officials as strong an indication as we can from the state so they can convince their parent company that Monroe County is the location they want to grow in," Mr. Leonard said.

In addition to the economic benefits to Northeastern Pennsylvania, Mr. Kanjorski said keeping the flu vaccine expansion in the United States is essential for national and homeland security purposes.

Sanofi Pasteur, the vaccine-making business of French pharmaceutical giant Sanofi-Aventis, is the leading producer of the flu vaccine in the United States and, during the 2004-2005 flu season, was the only provider of injectable flu vaccine in the country.

[2banana]

Amazing how when something is socialized (and heavily regulated) you eventually get to this point....

[ThisLittleLightofMine]

and after they spend $40M what gurantees are in place that they won't leave? What is $40M divided by 1500.....lets give them early retirement.

[Mamzelle]

Penn is a trial lawyers' heaven--$40M is chicken feed to Rendell and his tribe of gangsters...

[Bon mots]

Municipalities have to compete just like everyone else.

I wonder what the plant pays in property and state and local taxes. I wonder if it's this amount?

I know that if it were my plant, and I could make more money by moving it out of town, I would be packing the next day.

Of course, moving is a pain, and the first step would be to try to squeeze money out of the town.

[mewzilla]

This company is nuts if it sites in PA.

[STD]

Real tangential thinking going on at your house