Albany Molecular Research, Inc. to Combine Midwestern Operations

01-Nov-2001

In a move to consolidate its Midwestern operations, Albany Molecular Research, Inc. (Nasdaq: AMRI) today announced plans to relocate its biocatalysis Division from Iowa City to the Chicago area, effective in 2002.

Under the plan, AMRI's Biocatalysis Division, currently located in the University of Iowa's Oakdale Research Park in Iowa City, Iowa, will move its operations to the company's recently acquired facilities in Mount Prospect, IL, about twenty miles from downtown Chicago. AMRI purchased the 88,000 square-foot facility from Great Lakes Chemical Corporation on September 21, 2001. The building contains scientific laboratories, a pilot plant, and state-of-the-art fermentation facilities. AMRI currently employs 49 individuals in Mount Prospect and 29 in Iowa City. The Mount Prospect facility has the potential to house 200 employees, including 125 to 150 chemists.

Said Albany Molecular Research, Inc. Chairman and Chief Executive Officer Thomas E. D'Ambra, Ph.D., "We see immediate and promising synergies between Iowa's biocatalysis-based technologies and Mount Prospect's capabilities in gene expression, strain optimization and fermentation scale-up technologies. We believe that merging the people and assets of these two locations will significantly enhance AMRI's ability to maximize the novel discoveries that may emerge from both our combinatorial biocatalysis and natural products technologies."

D'Ambra continued, "While it was not a pleasant decision to consolidate the Iowa operations in the Chicago area, given the similarities and synergies between the two locations, the existing space to expand in Mount Prospect and cost-saving considerations, the choice was straightforward. We understand the difficulty that relocation can present in the lives of employees, their families and the community. We will do our very best to complete this transition with as little disruption as possible. Our Biocatalysis Division grew up and came of age in the Oakdale Research Park, and we recognize the contributions of our many friends in Iowa, including the many public officials, faculty and staff at the University of Iowa, in helping to make that growth possible. We regret being in a position to make this decision. Nevertheless, we do this with the company's best long-term interests as our motivation."

AMRI will offer relocation packages to those who continue with the company, as well as severance packages and outplacement services for those not relocating. The transition is expected to be completed during the first half of 2002.

"AMRI Chief Financial Officer David P. Waldek said, "The consolidation will result in one-time relocation costs of approximately $850,000 to be incurred over the next 9 months. The relocation costs will be offset by the anticipated annual savings associated with closing the Iowa facility of approximately $500,000. We anticipate the relocation costs in the fourth quarter of 2001 to be approximately $100,000. Long term, we believe this consolidation will result in enhanced collaboration among scientists, smoother technology transfer, and continued operating efficiencies."

AMRI's Biocatalysis Division is home to the company's unique combinatorial biocatalysis technology, which uses enzymes and microbial systems to generate novel compounds with potential use as small molecule prescription drugs. The company purchased this operation, formerly EnzyMed, Inc., in October 1999.

https://www.chemeurope.com/en/news/5693/albany-molecular-research-inc-to-combine-midwestern-operations.html