Healthcare company plans 600,000-square-foot manufacturing, distribution campus in Lee County – The North State Journal
Sanford in Lee County is set for a major new investment from healthcare company STERIS. (Indy beetle via Wikimedia Commons)
SANFORD — Global healthcare company STERIS plans to invest $600 million in a new manufacturing and distribution campus in Sanford, a project expected to create 335 jobs and further expand Lee County’s growing advanced manufacturing sector.
Gov. Josh Stein announced the project last week, saying the company will establish a 600,000-square-foot Chemistries Manufacturing Center of Excellence that will include manufacturing, research and development, laboratory, warehouse and distribution operations.
The new jobs will have an average annual salary of $68,704, above Lee County’s average wage of $59,903, according to the N.C. Department of Commerce. At full employment, the project could generate an annual payroll of more than $23 million.
“STERIS is making a major investment in North Carolina, which reinforces our state’s reputation as a powerhouse in the life sciences industry,” Stein said. “Decades of excellence in manufacturing and innovation have developed the world-class talent, research and supply chain that continues to attract global companies and drive long-term economic growth across our state.”
Founded in 1985, STERIS provides products and services used in patient care, with a particular focus on infection prevention. The company employs more than 18,000 people at roughly 250 locations in more than 35 countries.
The Sanford facility will consolidate and expand portions of the company’s formulated chemistries manufacturing and distribution operations as STERIS looks to increase U.S. production capacity.
“After extensive analysis of our existing facilities and customer demand, we have decided to make a significant investment in the United States to support our long-term global growth,” STERIS President and CEO Dan Carestio said.
Carestio said the new center will allow the company to accelerate product development, increase capacity, and improve its U.S. manufacturing and distribution network.
“Our customers save lives every day, and with this investment we will be well positioned to support their needs for years to come,” he said.
The project is being supported by a Job Development Investment Grant approved by the state’s Economic Investment Committee.
Under the 12-year agreement, STERIS could receive as much as $3.21 million in reimbursements from the state if it meets required job creation and investment targets. Payments are made only after the departments of Commerce and Revenue verify the company has met those benchmarks.
State officials estimate the project will increase North Carolina’s economy by about $1.8 billion over the life of the grant.
Commerce estimates the project will generate $4.25 in state revenue for every $1 in potential state cost, representing a projected return on investment of 325%.
Because Lee County is classified as a Tier 2 county under the state’s economic development ranking system, as much as $357,000 tied to the grant could also be directed to North Carolina’s Industrial Development Fund Utility Account. The fund helps communities pay for infrastructure improvements used to recruit or expand businesses.
The STERIS announcement adds another large manufacturing investment to the Sanford area, which has attracted a series of life sciences, pharmaceutical and advanced manufacturing projects in recent years.
“STERIS’ decision to make its Center of Excellence in Lee County affirms the region’s emergence as a premier hub for advanced manufacturing,” N.C. Commerce Secretary Lee Lilley said.
The state worked with a broad group of local and regional partners on the project, including the Economic Development Partnership of North Carolina, N.C. Biotechnology Center, Central Carolina Community College, the Sanford Area Growth Alliance, Lee County and the city of Sanford.
Transportation and utility partners include the N.C. Department of Transportation’s Rail Division, North Carolina Railroad Company, Norfolk Southern, TriRiver Water and Duke Energy.
“This landmark investment and expansion mark an exciting new chapter for both the company and our community, creating opportunities for shared growth and long-term economic prosperity,” state Sen. Jim Burgin said.
