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Released May 17, 2016 | SUGAR LAND
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Reported by Annette Kreuger, Industrial Info Resources (Sugar Land, Texas)--The very core of the Pharmaceutical-Biotech Industry is ingenuity and innovation. And, those dual philosophies spread beyond the discovery and production of the drugs and medical devices, to the facilities within which those tasks are carried out. Often, in the most unlikely of places.
When a drug company is seeking a new manufacturing or research space, there are myriad factors to consider, not the least of which is to build from the ground up or repurpose an existing building. Depending on the location for the new site, a renovation can, depending on the condition of the building and the extent of the upgrades required, save considerable cost compared to new construction. In some cases, grants and tax benefits make renovation even more attractive.
A number of factors come into play when a company chooses to renovate an existing facility instead of going with a new build. Positive aspects include greatly accelerating a project schedule, far less permitting than a new building would require, and the lower acquisition cost of a property that has long sat vacant. In the case of some of the truly older structures, under today's more restrictive zoning laws, a building of the same size and configuration could not be built.
A look at some of the more interesting repurposed projects reveals a wide range of capital investment costs, from just under $30 million to over $600 million. As varied as the industry itself, this project trend is not limited to North America, as a look at the first project will reveal.
U.K. contract manufacturer (CMO) Custom Pharma Services (East Sussex, England) has decided to invest nearly $30 million (£20 million) to turn a former bingo hall into a manufacturing plant and new headquarters. The former Beacon Bingo Hall in Moulsecoomb, Brighton. England, had been on the market for almost four years when Custom decided it would suit its needs, both in size and proximity to the company's existing distribution and packaging facility. When complete, the conversion will allow the company to add an estimated 50 new jobs.
The town of Ellsworth, Maine celebrated the news that the Jackson Laboratory would invest $125 million to transform a former Lowe's store into a mouse vivarium, breeding mice for biomedical research across the world. The Lowe's building has sat vacant since late 2011. With renovation work scheduled to begin this summer, the Jackson Labs expects to start "production" by early 2018.
In the true spirit of repurposing, Jackson's plans for the Lowe's site extend to the former outdoor garden center. That will be the site of an $8 million utility plant and data center servicing the new facility.
The biggest investment and perhaps the most innovative reuse project to date can be found in Cambridge, Massachusetts. Novartis International AG (NYSE:NVS) (Basel, Switzerland) made news and won the hearts of Cambridge locals in 2004 when it chose the city as the new global headquarters of the Novartis Institutes for BioMedical Research (NIBR), and picked the 500,000-square-foot former New England Confectionery Company (NECCO) Candy building as the site. The NECCO building, when first opened in 1927, was the world's largest candy-manufacturing plant.
The start of what would eventually prove to be a $1 billion investment in the area; Novartis transformed the former candy plant into a top-flight research facility, while retaining important elements of its origin. The company went so far as to incorporate the colors from an old NECCO tower, which resembled its namesake multi-colored candy roll, into the new design. Retaining the spirit of the former tenant was a nod from Novartis to Cambridge's abiding respect for historical landmarks.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
When a drug company is seeking a new manufacturing or research space, there are myriad factors to consider, not the least of which is to build from the ground up or repurpose an existing building. Depending on the location for the new site, a renovation can, depending on the condition of the building and the extent of the upgrades required, save considerable cost compared to new construction. In some cases, grants and tax benefits make renovation even more attractive.
A number of factors come into play when a company chooses to renovate an existing facility instead of going with a new build. Positive aspects include greatly accelerating a project schedule, far less permitting than a new building would require, and the lower acquisition cost of a property that has long sat vacant. In the case of some of the truly older structures, under today's more restrictive zoning laws, a building of the same size and configuration could not be built.
A look at some of the more interesting repurposed projects reveals a wide range of capital investment costs, from just under $30 million to over $600 million. As varied as the industry itself, this project trend is not limited to North America, as a look at the first project will reveal.
U.K. contract manufacturer (CMO) Custom Pharma Services (East Sussex, England) has decided to invest nearly $30 million (£20 million) to turn a former bingo hall into a manufacturing plant and new headquarters. The former Beacon Bingo Hall in Moulsecoomb, Brighton. England, had been on the market for almost four years when Custom decided it would suit its needs, both in size and proximity to the company's existing distribution and packaging facility. When complete, the conversion will allow the company to add an estimated 50 new jobs.
The town of Ellsworth, Maine celebrated the news that the Jackson Laboratory would invest $125 million to transform a former Lowe's store into a mouse vivarium, breeding mice for biomedical research across the world. The Lowe's building has sat vacant since late 2011. With renovation work scheduled to begin this summer, the Jackson Labs expects to start "production" by early 2018.
In the true spirit of repurposing, Jackson's plans for the Lowe's site extend to the former outdoor garden center. That will be the site of an $8 million utility plant and data center servicing the new facility.
The biggest investment and perhaps the most innovative reuse project to date can be found in Cambridge, Massachusetts. Novartis International AG (NYSE:NVS) (Basel, Switzerland) made news and won the hearts of Cambridge locals in 2004 when it chose the city as the new global headquarters of the Novartis Institutes for BioMedical Research (NIBR), and picked the 500,000-square-foot former New England Confectionery Company (NECCO) Candy building as the site. The NECCO building, when first opened in 1927, was the world's largest candy-manufacturing plant.
The start of what would eventually prove to be a $1 billion investment in the area; Novartis transformed the former candy plant into a top-flight research facility, while retaining important elements of its origin. The company went so far as to incorporate the colors from an old NECCO tower, which resembled its namesake multi-colored candy roll, into the new design. Retaining the spirit of the former tenant was a nod from Novartis to Cambridge's abiding respect for historical landmarks.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
