State approves incentives to land Merck

BT Catalyst, Jan-Feb, 2004

NORTH CAROLINA LEGISLATORS HAVE APPROVED INCENTIVES AND tax breaks designed to lure drugmaker Merck & Co. Inc. to build a vaccine plant in Durham.

"I appreciate the vision of Governor Mike Easley and the General Assembly in recognizing the value of a company like Merck, a company that could bring high-wage, high-skilled biotech jobs to North Carolina," said N.C. Department of Commerce Secretary Jim Fain.

[ILLUSTRATION OMITTED]

In a one-day special session of the General Assembly called by Gov. Mike Easley in December, lawmakers voted to give Merck up to $24 million in site infrastructure development money to develop 256 acres in Treyburn Corporate Park in northern Durham, plus $12.8 million in various incentives, including $4.8 million from a rebate on state sales taxes on building materials and equipment. The sales tax rebate also would go to other pharmaceutical and biotechnology companies that invest at least $100 million and employ at least 100 new workers in the state.

Merck is expected to apply for two state incentives right away--site infrastructure development money to buy the site in Treyburn and a job development investment grant (JDIG). JDIG is negotiated and awarded by the Economic Investment Committee only for jobs and investment that would not otherwise be established or locate in the state. Grants to companies may be funded by up to 75 percent of employee withholding taxes for the new jobs at the new or expanded facility. A portion of the eligible grant amount (25 percent) in more developed counties like Durham will be used to fund the existing Utility Account of the state Industrial Development Fund, a rural infrastructure fund, Merck will not receive any cash incentives from Durham County but will be on a fast track for land clearing and construction permits.

New Jersey-based Merck has agreed to invest up to $300 million to build a vaccine manufacturing facility. The plant would initially employ up to 200 workers and manufacture Merck vaccines for measles, mumps and rubella. Construction of the plant is projected to take two years. Merck expects it will take another two years for the Food and Drug Administration to approve the facility for production. Merck plans to have the plant operating in 2008.

RELATED ARTICLE: About Merck

Merck & Co. Inc. is a global research-driven pharmaceutical products company Merck discovers, develops, manufactures and markets a broad range of innovative products to improve human and animal health, directly and through its joint ventures.

Mission: The mission of Merck is to provide society with superior products and services by developing innovations and solutions that improve the quality of life and satisfy customer needs, and to provide employees with meaningful work and advancement opportunities, and investors with a superior rate at return

Corporate Headquarters: Whitehouse Station, New Jersey

Locations in North Carolina: Cary and Wilson

Employees: 77,300 people around the world

Web site: www.merck.com