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Italy-Based Delmar Plans $45 Million Expansion-COE in Montreal, Canada

02/05/2018
Delmar, a subsidiary of Italy-based Holding Fabbrica Italiana specialized in the production of chemicals for the pharmaceutical industry, will invest $45 million to expand its operations and create a center of excellence for the production of active pharmaceutical ingredients in Greater Montréal, Canada.

“As a result of our R&D, and by investing in cutting-edge technology and in our staff, we were able to develop innovative products and double our production capacity. Creating a centre of excellence means we will be strategically positioned in the API industry and win global market shares, which should reach US$1.2 billion within five years,” said Luigi Erriquez, General Manager, Delmar Chemicals.

The investment project to modernize the facilities and increase the company’s production capacity will include expanding the plant in the Borough of LaSalle and purchasing cutting-edge equipment, according to Montreal International. With the establishment of its centre of excellence, the sole API manufacturer in Québec will be able to satisfy new market opportunities, for both patented and generic pharmaceutical products.

Delmar will be able to focus on research and development, where it already invests nearly half a million dollars every year, working with Université de Montréal, McGill University and UQAM. This collaboration has already resulted in six new generic products in the past two years.

In addition to receiving an interest-free loan of $10 million from the ESSOR program, administered by Investissement Québec and the Ministère de l’Économie, de la Science et de l’Innovation for the project, Delmar also benefited from a $1.5-million repayable contribution from Canada Economic Development for Quebec Regions (CED), under the Quebec Economic Development Program (QEDP). The company also received support from Montréal International, the Italian Chamber of Commerce of Canada and The CAI Global Group.

‘"The Delmar investment in Montreal provides great positioning for the company to service the North American market. As the only supplier of this kind in Quebec, this project will strengthen Montreal’s life science ecosystem,’’ said Marc Beauchamp, President & CEO of The CAI Global Group, a location advisory firm offering expertise in site selection, incentive negotiation, capital investment and economic development strategies. 

“The life sciences and health technologies industry is a key sector for drawing foreign direct investments to Québec. Over the past five years, multinational corporations have invested over a billion dollars. Investments facilitated by Montréal International increased by 15% for Greater Montréal alone in 2017, and the number of new projects in the pipeline is also on a steep rise. We need to leverage the wealth of our ecosystem that revolves around innovation, collaboration and a multidisciplinary approach,” said Hubert Bolduc, President & CEO, Montréal International.

“The Government of Canada is intent on becoming a global innovation hub and encouraging new investments. That’s why we are so pleased to support the Delmar project. With this major technological upgrade, Delmar proves it belongs among the class of leading companies that are adapting to the new realities of a global economy and taking measures to flourish,” The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for CED added.

“With the launch of the 2017–2027 Québec Life Sciences Strategy, our government wants to speed up growth in this sector, which is so vital to Québec’s economy, by supporting research, providing funding to businesses and by stimulating quality job creation throughout the entire innovation chain. To achieve this objective, it is crucial to invest in our infrastructures, in collaborative research and in innovative projects. The Delmar project is perfectly aligned with that goal, and that’s why we are proud to support this investment,” Dominique Anglade, Deputy Premier of Québec, Minister of Economy, Science and Innovation, and Minister responsible for the Digital Strategy added.

“Montréal has a lot to offer to large corporations and the major investments that Delmar is making to expand its operations and to create its centre of excellence clearly proves that. I believe this strong statement, made by a reputable company, will help us draw new players in the health sector as well as other industries. The Montréal economy is doing well and by continuing to be an open, dynamic, attractive and prosperous city, we will draw more large corporations from around the world to maintain our economic momentum. Thank you, Delmar, for choosing Montréal,” Valérie Plante, Mayor, City of Montréal, and Chair, Communauté métropolitaine de Montréal added.

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