Sept. 28, 2007

  

A Publication of the Economic Development Corporation of Utah
CEO Jeff Edwards

PRESIDENT'S

MESSAGE
Thermo Fisher Scientific Expansion Adds to Strong Life Sciences Industry
Utah’s life sciences industry boasts more than 250 companies. Many, grown right here in Utah, are spin-offs from the State’s academic institutions. Utah ranks 8th nationally for academic research and development spending and 9th nationally for its comprehensive inventory of science and technology assets, research and development capabilities and entrepreneurial capacity. In May of this year, Business Facilities magazine ranked Utah 1st in the nation for medical devices and equipment. Clearly, life sciences it is a significant industry here.

In Utah, we have been fortunate to grow, recruit and retain some of the best of the best in the industry including ARUP, Merit Medical, Myriad Genetics, Fresenius and Varian Medical Systems. Today’s article takes a look at Thermo Fisher Scientific, who recently announced an expansion and retention project in Logan, Utah.

This week's edition of the Economic Review also includes links to many of the ED-related news stories from the past week. As always, if you have comments, suggestions or topics you'd like to see in the Economic Review, please contact us by clicking the Comments link at the bottom of this page. Enjoy!

Jeff Edwards
Jeff Edwards
President and CEO


FEATURE

Thermo Fisher Scientific Will Add New Jobs, Expand Logan Manufacturing Operations with $11.4 Million BioCenter


Thermo Fisher Scientific Inc., based in Waltham, Mass., recently announced that it will build an $11.4 million BioCenter in Logan to manufacture high-grade, sterile plastic containers used in the life-science research, biotechnology and pharmaceutical industries.

The announcement follows a decision by the Governor's Office of Economic Development (GOED) to grant Thermo Fisher Scientific a tax rebate of $2,735,000 over 10 years and other concerted efforts by Logan City, Logan Redevelopment Agency (RDA) and GOED to keep the company’s expansion in Utah.

In return for the tax rebate and free land from Logan City, Thermo Fisher has a plan that could create as many as 196 full-time jobs over the next 10 years. Thermo Fisher’s Logan operations currently employ about 400 people.

Rick Sullivan, vice president of marketing for the BioProcess Production unit of Thermo Fisher, says the partnership with GOED, Logan City, the Logan RDA, and EDCUtah was integral to its decision to locate the BioCenter here, but the company made an objective decision after reviewing all of its options. In fact, multiple national and international sites were considered before settling on Logan.

The 94,000-square-foot BioCenter will be constructed in three phases over the next four years, replacing and expanding Thermo Fisher’s existing operation in Logan, including an administration building, sera and liquid-media processing plant, powdered-media operation, warehouse and bioprocess container facility. The first phase will be the construction of a 37,000-square-foot building that is expected to be completed by the fall of 2008. Sullivan says the initial phase is expected to create 75 new jobs, both in production and management functions.

The new BioCenter responds to increasing demand for disposable bioprocessing technology, which serves cell-culture applications as well as the production of protein-based drugs. Single-use bioprocessing containers are used in mixing, storage and transportation of bioprocessing fluids and for bioreactors (used to grow cells, proteins and other biochemically active substances). These components eliminate the risk of batch-to-batch cross contamination and significantly reduce startup costs for customers.

Marijn E. Dekkers, chief executive officer of Thermo Fisher Scientific, says the company is excited about the expanded capabilities that the BioCenter will provide. The market outlook for the bioprocessing industry continues to be very bright, as there are thousands of biotech products under development and the investment will allow the company to better meet the needs of its customers as they work toward new therapies for treating disease and improving health.

Thermo Fisher Scientific Inc. (NYSE: TMO) is the world leader in serving science, with annual sales of more than $9 billion. The company employs 30,000 people world wide and serves more than 350,000 customers within pharmaceutical and biotech companies, hospitals and clinical diagnostic labs, universities, research institutions and government agencies, as well as environmental and industrial process control settings.

The company’s Logan operations actually began as a technology transfer in 1967, when Dr. Rex Spendlove, a professor at Utah State University, founded a company called HyClone. Spendlove was studying a viral disease fatal to children, especially in developing countries. The quality of commercially available fetal bovine serum (FBS) was so poor that Dr. Spendlove developed his own methods to produce a high-quality serum to meet his research needs. Recognizing a real need in the scientific community for high quality FBS, he founded HyClone to meet that need. Fisher Scientific acquired HyClone in 2003 and last November merged with Thermo Scientific to form Thermo Fisher Scientific.

Related Stories

Tax rebate secures Logan BioCenter (Deseret Morning News)
GOED Gives Barnes Less (Salt Lake Tribune)
Valley Laboratory Looks to Expand (Herald Journal)

What's Up Down South?

2008 Washington County Economic Summit Slated
for January 9

Find out what's really happening economically in Washington County and how it affects your business at the 2008 Washington County Economic Summit.
Time: 7:00 AM - 4:30 PM
Date: Wednesday, January 9, 2008
Location: Dixie Center, 1835 Convention Center Drive, St. George

Contact Information:
Scott Hirschi
%Dixie College
225 South 700 East
St. George, UT 84770
(435) 652-7750
www.whatsupdownsouth.com

CALENDAR


Oct. 6-10: Industrial Asset Management Council (St. Louis)

Oct. 18: PTAC Symposium (Sandy, Southtowne Expo Center)
Cost: $50.00/person for the first person and $35.00/ additional registration from the same company. Fee includes a continental breakfast, lunch, and all the training sessions, exhibits and materials. Time: 7:45 a.m. to 4 p.m. Event Coordinator: Myrna Hill
Phone: 801-388-775. E-mail: ptac@utah.gov

Oct. 28-31: CoreNet (Atlanta)

Nov. 7: EDCUtah Quartely Update

Dec. 19: EDCUtah Holiday Open House

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IN THE NEWS

Economic Development Headlines from the Past Week

Los Angeles clothier to enter Utah market at Trolley Square

- American Apparel, the largest T-shirt manufacturer in the United States, is planning to open its first Utah store at Trolley Square in time for the Christmas holiday shopping season.  (SL Enterprise)

Cutrubus brothers plan to build new mixed-use community in Riverdale

- The Crossing, a new mixed use development in Riverdale, will feature 80,000 square feet of retail, office and residential uses.  (SL Enterprise)

Texas bag manufacturer to build 112,000 sq. ft. facility in Ogden

- Heritage Bag Co., a manufacturer and distributor of plastic bags for the industrial and institutional markets, has purchased a 112,000 square foot building in Ogden, where it plans to begin operations in the second quarter of 2008.  (SL Enterprise)

Wing takes a step up: Ladder company opens new plant in Springville

- As Hal Wing announced the grand opening of the new corporate headquarters of Wing Enterprise Inc. on Thursday, he credited the company's employees for making the event possible. (Morning News)

Panel supports giving Fund of Funds a boost

- The Workforce Services and Community and Economic Development Interim Committee on Wednesday endorsed a draft bill that would increase the level of tax credits in the Utah Fund of Funds program. (Morning News)

Provo business park gets $2M grant

- More than 1,500 new manufacturing jobs and millions of dollars in private investment could be generated in Provo over the next decade, thanks to a $2 million federal grant awarded on Friday to the Mountain Vista Business Center expansion project. (Daily Herald)

Provo alliance gets a 3-month reprieve

- The Provo City Council will give $50,000 to the Downtown Business Alliance, keeping alive for three more months the nonprofit group that markets Provo's Historic Downtown to businesses and customers.
(Morning News)

Outlook still rosy

- Utah business leaders remain "overwhelmingly optimistic" about the financial future of their companies, though such wild optimism has waned slightly in the past year, according to a survey released by Zions Bank.
(Morning News)

Howa 'bout that!

- Utah contractor and landowner Rick Howa is taking a $50 million gamble on one of Salt Lake City's oldest neighborhoods. He's broken ground on Marmalade, a mixed-use development along 300 West from 500 North to 600 North in Salt Lake City. (SL Tribune)

Orem mall to add on

- The owners of University Mall have big plans for the scraggly, weed-filled lots and crumbling roads alongside the Orem shopping complex. (Morning News)

New Centerville Wal-Mart makes 5 for Davis County

- What is probably one of the most pleasant-looking Wal-Marts opened Wednesday in Centerville — the second one to open in Davis County this year. (Morning News)

Provo to get a Facelift

- Downtown Provo is one step closer to getting a new look. The Provo City Council voted in favor of a resolution Tuesday, declaring its intent to create the Provo Central Business Economic Development District despite spirited opposition from several property owners. Councilman Steve Turley abstained from voting. (BYU News Net) 

State works to lure more engineers

- On Tuesday, one reason became clear: Utah County's jail expansion is going to cost taxpayers more money because the original jail plans weren't as complete as they should have been.
That's because there aren't enough engineers to go around, says county public works director Clyde Naylor, and the county now has to pay for unexpected changes in the jail plan. (Daily Herald)

Utah employment surges as nation's job growth weakens

- The weak job market across the United States would be a little worse if it weren't for little old Utah. The 54,500 jobs created in Utah over the past year represent about 5 percent of all the jobs created in the country - this from a state with fewer than 1 percent of all U.S. jobs, the Department of Workforce Services reported Tuesday. (SL Tribune)

Rate cut good for Utah

- The Federal Reserve's decision to lower its benchmark interest rate to prevent the country from slipping into recession may provide an additional boost for Utah's economy, which already is among the strongest in the nation. (SL Tribune)

Despite a Dip in August, Job Numbers Remain Above Long-Term Average

- The number of new jobs created in Utah dropped slightly in August, moving down to 4.5 percent growth over last year. Still, growth remains well above the state's long-term average of 3.3 percent, says Department of Workforce Services economist Austin Sargent. (KCPW) (Morning News)

Zions Bank and the Utah Entrepreneur Challenge Create Entrepreneurial Outreach Program

- Zions Bank and the Utah Entrepreneur Challenge (UEC) have teamed up to support entrepreneurship across the state. (Utah Business Magazine)

Economic Summit Encourages New Business

- Carbon and Emery counties’ businesspeople, representing industries from agribusiness to healthcare, will gather at the new Carbon County Events Center in Price today and tomorrow for the fourth annual Castle Country Economic Summit. (Utah Business Magazine)

Taking Off the Rose-Colored Glasses

- Utah has been riding high on a wave of strong economic growth, but now it’s time to address the issues that accompany such rapid expansion, said Utah Lt. Gov. Gary R. Herbert at the Murray Chamber of Commerce’s monthly Women in Business luncheon Tuesday.  (Utah Business Magazine)