Global biotech giant Amgen turned down $110 million in incentives when it picked Holly Springs, North Carolina, over Houston for a biomanufacturing operation.
The Thousands Oaks, California-based multinational company says it's planning a 355-job facility in the Wake County town. The project was announced Tuesday during a meeting of the state's Economic Investment Committee, part of the N.C. Department of Commerce.
The EIC approved a state incentives package for Amgen worth nearly $12.6 million, which when combined with more than $22.7 million in local incentives is still just a fraction of the package linked to the Houston site, according to documents released to Triangle Business Journal, a sibling publication of L.A. Biz. Houston, according to Commerce documents, offered more than $110 million in incentives, including property tax abatements and cash grants.
Amgen, to earn the North Carolina state incentives, has pledged to invest $380.6 million by the end of 2025. But the company is actually planning to invest $550 million, officials told the state.
Amgen, with a presence in about 100 countries, develops treatments for serious illnesses and diseases with a limited number of treatment options. The company uses methods such as advanced human genetics to treat multiple conditions, from cancer to asthma. It has more than 20,000 employees worldwide and does $25 billion in annual revenue.
A project briefing memo from Commerce says Amgen's site search started with more than 15 markets “and dozens of proposed sites.” Amgen evaluated a list of criteria, from natural disaster risk and political environment to diversity potential and labor access. And two finalist sites were identified in Holly Springs and Houston.
Robert Kenyon, the Amgen executive tapped as site lead for Holly Springs, wouldn’t comment on the competition between the states. “We really won’t go into the negotiations with other places, that’s all confidential,” he told TBJ Tuesday.
But the North Carolina incentives proved critical, as records show “the company has stated that an award at this level is critical to North Carolina’s consideration as the project location.”
The Amgen project is the latest win for North Carolina over Texas. Just last week, power grid technology company Smart Wires picked the Triangle over Austin, and economic development officials have said to expect more wins ahead, particularly as a key tax program in the Lone Star State is set to expire.
Kenyon, vice president of manufacturing at Amgen, said the company's site selection came down to talent – “access to talent, the access to diverse talent.” The Triangle’s higher education-fueled training and development ecosystem also factored into the decision, he said, as did the state’s “tremendously friendly environment.”
“Lastly, it’s just a great place for a young family to start up,” he said.
Right now, the company continues to go through land negotiations for its Holly Springs operation, he said.
The Holly Springs facility is yet to be earmarked for a specific product. Kenyon said the site would be built with a platform in mind — meaning it could support a “variety of different processes and medicines.”
Kenyon joined Amgen after 25 years at competitor Biogen (Nasdaq: BIIB), where he most recently was vice president of Biogen's North American manufacturing operations in Research Triangle Park. Amgen approached him with an enticing offer in 2019, a relocation to Puerto Rico. His new role, overseeing the expansion in Holly Springs, will bring him back to the Triangle.
“I was super excited to come back to this area,” Kenyon said. “I joined Amgen because of the reputation Amgen has as an amazing innovator. … The company has just the right culture.”
Kenyon expects to start onboarding for the Holly Springs operation immediately. While much of the hiring for the new site won’t begin in earnest until next year, the firm has already started assembling a small team here, he said.
