Affymetrix Chooses Ohio over California for USB Facility Expansion

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Researched by Industrial Info Resources (Sugar Land, Texas)--USB Corporation, a subsidiary of Affymetrix Incorporated (NASDAQ:AFFX) (Santa Clara, California), has opted to expand and renovate its Warrensville Heights, Ohio, facility in lieu of moving its operations to California. Located just outside of Cleveland, USB will receive a 50% tax credit for seven years. This approximate $500,000 incentive is contingent on USB remaining operational at the location for 14 years. The grant will help USB retain 63 jobs in Warrensville Heights. The grant also would help the company expand by about 15,000 square feet in Warrensville Heights, said Mike Lachman, Senior Vice President and General Manager of Affymetrix Ohio. Lachman was USB's Chief Executive in January when Affymetrix completed a $75 million cash acquisition of the company.

The project, currently under construction and worth an estimated $2.5 million, includes renovation and leasehold improvements in the existing building, the purchase of machinery and equipment, and on-site infrastructure improvements. The expansion will create 61 new full-time jobs while retaining more than 60 existing full-time jobs within the first three years of the project's initial operations. USB makes enzymes, reagents and biochemicals used to do genetic research. Affymetrix makes genomic measurement tools used to diagnose disease and tailor patient treatments.

Affymetrix and USB will use the tax credit to train new workers who likely will hold advanced degrees as well as technical degrees, said Kristen Yakimow, Vice President of Integration for Affymetrix. "We have highly trained, highly skilled workers," Yakimow said. "There's a lot of training associated with that." Affymetrix and USB will receive a rapid outreach grant from the Ohio Department of Development. These grants are supposed to help companies or communities create or keep jobs.

In addition, Affymetrix will move equipment from its West Sacramento manufacturing facility -- which it is closing -- to Ohio, Yakimow said. The company is consolidating manufacturing operations at USB and at a plant in Singapore to save money, the company said in July. The company chose to expand at USB partly because of the incentive package put together by Team NEO, BioEnterprise and the Ohio Department of Development, Yakimow said. "That team really made this possible."

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