Merck Adding 70 New Jobs

Merck Adding 70 New Jobs Author(s):

DAN WRIGHT, Daily News-Record Date: June 5, 2007 Section: Front Page

ELKTON - Pharmaceutical giant Merck & Co. Inc. will invest $193 million to expand its Stonewall Plant, according to Gov. Timothy M. Kaine. The expansion will create 70 new jobs at the facility. The news comes on the heels of Merck's announcement in December of a $57 million expansion to the Rockingham County facility. Together, the two projects represent a quarter-billion-dollar investment in the plant. "It is remarkable that Merck will invest another $193 million just six months after its last expansion announcement," Kaine said. The expansion will enhance production capabilities for the company's medicines and vaccines. "It's critical that Merck has sufficient production capacity to meet growing worldwide demand," said Charles Vencill, the plant's manager. With the expansion, Merck qualifies for a $1.5 million grant from the Virginia Investment Partnership program. Three Major Buildings Established in 1941, the Stonewall Plant is one of seven Merck manufacturing facilities in the continental United States. Located along U.S. 340 south of Elkton, it consists of more than 100 buildings on 1,350 acres. The expansion should be completed in 2009 or early 2010, said Jim Russell, director of support operations. "We're very early in the design stage," Russell said. "I don't know the exact size, but we're looking at three major buildings." The new buildings will produce "current and new products," primarily vaccines, he added. Merck's Stonewall Plant now employs more than 700 people and has an annual payroll of $60 million. The new jobs produced by the expansion will have annual salaries of $65,000 and up, Russell said. The jobs include machine operators, mechanics, engineers and quality control technicians in an around-the-clock operation.

Viable Tech Center Merck's expansion will further strengthen the local economy, said William Kyger, chairman of the Rockingham County Board of Supervisors. "This latest investment by Merck shows a strong commitment to Rockingham County and the Shenandoah Valley as a strategic business location," Kyger said. The expansion offers further evidence that the Valley is emerging as a viable technology center, according to the Robin Sullenberger, chief executive officer of the Shenandoah Valley Partnership. He cited the announcement last year by SRI International to build a drug research center in Rockingham County and expansions of other technology firms in the city and county, including Jenzabar, Rosetta Stone and SI International. "There is a synergy that develops due to a clustering of tech firms," Sullenberger said. "That makes the region more attractive." Merck (NYSE: MRK) has headquarters in Whitehouse, N.J., and reported 2006 revenue of $22.6 billion. The company's stock closed Monday at $51.75, down 39 cents. Contact Dan Wright at 574-6293 or [email protected]