Business

Novo Nordisk to expand Clayton insulin products plant

Posted October 4, 2010 11:04 a.m. EDT
Updated October 4, 2010 11:33 a.m. EDT

— A company that specializes in diabetes care will expand its Clayton plant, creating 85 jobs, officials announced Monday.

Novo Nordisk Inc. will invest $73 million in the expansion, which will add two assembly lines and two packaging lines at the plant, which makes various insulin delivery devices.

"Insulin delivery devices give people with diabetes a convenient way to manage their health and engage in a productive lifestyle," Jerzy Gruhn, president of Novo Nordisk, said in a statement. "As patients in the U.S. continue to move from administering insulin with a conventional vial and syringe to using a pen device, Novo Nordisk will be prepared to meet growing market demand."

The company is teaming with Nypro Inc., which makes plastic products and will supply components for the insulin devices. Nypro will expand its Buncombe County plant by 75,000 square feet and will add 120 jobs, officials said.

Novo Nordisk employs more than 420 people in Clayton. The new jobs will have an average annual salary of $42,976, plus benefits, which is higher than Johnston County's average of $31,408.

The company was awarded a $400,000 grant from the One North Carolina Fund, which provides cash grants to attract business projects to the state. No money is paid upfront, and companies must meet job and investment targets to receive payments.

The state Economic Investment Committee also voted Monday to award a Job Development Investment Grant to Novo Nordisk. Under the terms of the JDIG, the company is eligible to receive a rebate of 65 percent of the state withholding taxes on the new jobs. If it meets targets called for under the agreement and sustains them for 10 years, the company could obtain $840,000 from the grant.