Financial incentives may have played a large role in keeping 120 jobs in St. Joseph.
On Monday, Bayer HealthCare announced it will invest $6.5 million in its local manufacturing operations. The city's Chapter 100 program, Buchanan County and the state all provided incentives to make the investment possible, St. Joseph Chamber of Commerce executives said.
"The threat was very real that Bayer may have left the community," said Patt Lilly, president and chief executive officer of the chamber.
The German-based company acquired Teva Pharmaceuticals Industries in January 2013. Part of its investment will be to "upgrade" the current manufacturing facilities, but it could have come with changes to personnel.
"It was of the utmost importance for these jobs to be secured," Mr. Lilly said. "We are very happy that we were able to help negotiate a deal to keep these workers employed and to keep this stake in the animal health corridor in St. Joseph."
Bayer employs about 200 people in St. Joseph. And while Mr. Lilly said in today's business world nothing is a certain, he believes they've done all the layoffs they intend to do.
"Our commitment was to try to incentivize the project, to help keep the manufacturing here," he said.
Tax abatements were provided on property improvements and new machinery at the company's campus at 3915 S. 48th Street Terrace.
The business also received a forgivable, $200,000 loan from the county to train on new equipment, as well as moving costs associated with the consolidation of the Mitchell Woods quality control lab facility.
The state's Retention Works program provided more than $1.35 million in benefits to Bayer over eight years. This program is used for eligible companies that otherwise would relocate out of the state. The program provided $50,000 for training costs.
All incentives were contingent on 120 to 125 employees staying in St. Joseph, with an average annual salary of at least $59,000, plus benefits. The incentive package was based on a $4.5 million investment originally outlined by the company.
Bayer is making an estimated $10 million in investments in St. Joseph and at a site in Shawnee, Kan.
Jennifer Hall can be reached
at jenn.hall@newspressnow.com.
Follow her on Twitter: @SJNPHall. ___
