AMPAC Fine Chemicals, a leading manufacturer of Active Pharmaceutical Ingredients in the United States, will invest $25 million to expand its existing operation in Petersburg, Virginia. The company plans to create 156 jobs.

According to city officials, AMPAC Fine Chemicals is a major collaborator in the new U.S. government-funded partnership with Phlow Corporation, Medicines for All Institute, and non-profit drugmaker Civica Inc. Through this partnership, Phlow executed a $354 million contract with the U.S. Biomedical Advanced Research and Development Authority to produce essential medications using advanced manufacturing processes from the Medicines for All Institute based at the College of Engineering at Virginia Commonwealth University.

“Of our three AMPAC locations, Virginia offers an enabling environment for developing and sustaining the growth in capacity and infrastructure demanded for the pharmaceutical industry,” said Dr. William DuBay, AMPAC Global Vice President of Research and Development. “Our growing relationship with the Commonwealth, VEDP, the City of Petersburg, and others, including VCU, Phlow, and Civica, is a cornerstone of our vision for American-based manufacturing of critical pharmaceutical ingredients.”

As an incentive, Virginia Economic Development Partnership (VEDP) worked with the City of Petersburg, Virginia’s Gateway Region, the Community College Workforce Alliance and Dominion Energy to secure the project for the Commonwealth. Governor Northam approved a $640,000 grant from the Commonwealth’s Opportunity Fund to assist the City of Petersburg with the project. The Governor also approved a $250,000 Virginia Investment Performance Grant, a performance-based incentive that encourages continued capital investment by existing Virginia companies. The company is eligible to receive benefits from the Major Business Facility Job Tax Credit for new, full-time jobs created.

“This major expansion boosts the fast-growing pharmaceutical manufacturing campus in Petersburg and is a major win for the region and the Commonwealth,” said Secretary of Commerce and Trade Brian Ball. “We are confident Virginia’s workforce training programs and skilled talent pipeline will ensure AMPAC’s continued success, and applaud the company and its partners for fulfilling the mission to provide quality products to patients everywhere.”

As part of this initiative, city officials said AFC will expand the former Boehringer Ingelheim chemical plant, purchased in 2016, and in operation since 2019. In January, Governor Northam announced that Civica Inc. would invest $124.5 million to establish a new facility adjacent to Phlow’s future operation and AMPAC’s existing facility. The Civica plant will convert active pharmaceutical ingredients from AMPAC and Phlow into vials and syringes of finished medications for use in hospitals.

“Our region is emerging as a pharmaceutical manufacturing cluster and we look forward to supporting AMPAC and its partner companies as they stabilize America’s essential medicine supply chain,” added Keith Boswell, President and CEO of Virginia’s Gateway Region Economic Development Organization added.