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Investment will triple local employment and strengthen regional pharma industry

Furthers SK Group’s plans to invest in and grow U.S. businesses

PETERSBURG, Va., May 4, 2021 – AMPAC Fine Chemicals (AFC), an SK pharmteco company, is creating more than 150 new jobs and investing more than $25 million in its Petersburg, Va., site as part of a commitment to bring high-quality pharmaceutical manufacturing to the U.S.

In addition to the new jobs, AFC will expand the site’s capabilities by adding an East Coast presence for AMPAC Analytical Labs and enhanced R&D functions for continuous processing of pharmaceutical ingredients. AMPAC Analytical provides extensive development and testing services for the analysis, validation and release of intermediates and APIs.

Virgina Gov Ralph Northam and AMPAC President Jeff Butler
AMPAC Fine Chemicals President Jeff Butler (right) stands with Virginia Governor Ralph Northam (left) on Tuesday at the company’s Petersburg, Virginia, site. AMPAC Fine Chemicals, an SK pharmtecocompany, was joined by the Governor in announcing an expansion of the site.

Through the expansion, AFC will work alongside Phlow Corporation, Civica Inc. and Virginia Commonwealth University’s Medicines for All Institute to produce essential medicines for U.S. healthcare providers. AFC will make the active pharmaceutical ingredients in these medicines.

“High-quality pharmaceutical development and manufacturing are vital to meeting healthcare needs in the U.S.,” said Jeff Butler, President of AMPAC Fine Chemicals. “AFC’s Petersburg expansion will create new jobs for the region, new capabilities for Virginia’s growing pharmaceutical industry and new resources to strengthen the U.S. medical supply chain.”

Virginia Governor Ralph Northam announced the new jobs today at the Petersburg site along with other business and government partners, including Petersburg Mayor Samuel Parham.

“AMPAC’s investment will further advance the pharmaceutical cluster that has emerged in Petersburg and solidify our Commonwealth as a significant player in domestic drug manufacturing,” said Governor Northam. “This critical partnership between Phlow Corporation, Medicines for All Institute, Civica Inc., and AMPAC will have a positive and far-reaching impact, ensuring greater access to high-quality, lifesaving medications while also creating much-needed jobs to support our economic recovery in Virginia.”

AMPAC Expansion Shovel Ceremony
Virginia officials and AMPAC Fine Chemicals, an SK pharmteco company, held a shovel ceremony Tuesday in Petersburg, Virginia, to celebrate an expansion of AFC’s site. Pictured (from right-to-left) are Virginia Delegate Lashrecse Aird, AMPAC Fine Chemicals President Jeff Butler, Virginia Governor Ralph Northam and Phlow CEO Eric Edwards.

Petersburg Resurgence Continues

This expansion builds on AFC and SK pharmteco’s long-term investment in Petersburg. AFC acquired the manufacturing facility in 2016 and announced resumption of operations in 2019. Since the beginning of 2021, the company has hired 50 employees, doubling its local employee base to 100. AFC plans to fill additional positions over the next 36 months, bringing the total projected employment to approximately 250 by the end of 2023.

AFC has worked closely with VEDP on expanding the pharmaceutical industry’s presence in the state. AFC will partner with the Virginia Talent Accelerator Program in the recruitment and training of potential employees. AFC will also partner with the Virginia Federation for Advanced Manufacturing Education (FAME) and John Tyler Community College to develop a robust workforce training program.

SK’s Growth in the U.S.

The investment in Petersburg is part of SK’s long-term commitment to expand its footprint in the U.S. through investing in businesses that have a positive impact on society. SK Group, South Korea’s third-largest conglomerate, acquired AFC in 2018 and created SK pharmteco in 2019 by bringing together the pharmaceutical manufacturing capabilities of AFC in the U.S. with SK biotek in Ireland and South Korea.

SK pharmteco’s global headquarters were established in Rancho Cordova, Calif., alongside AFC’s headquarters. In addition to its Virginia expansion, SK pharmteco and AFC are adding jobs and capabilities to AFC’s California and Texas facilities.

Across its operating companies, SK Group is investing billions of dollars in U.S. businesses that create long-term economic and social value. In addition to biopharmaceuticals, SK is investing in advanced materials, green businesses and digital technologies.

Among its recent U.S. investments, SK Inc. closed this year on a $1.6 billion investment in Latham, NY-based Plug Power, a leading provider of hydrogen fuel cell and fueling solutions. Last year, SK E&S invested $75 million in a joint venture with San Francisco-based Sunrun Inc. to accelerate adoption of renewables and distributed energy systems for homes.

In the past year, SK Life Science, based in Paramus, N.J., has invested $120 million and created more than 100 jobs in the U.S. to expand support for patients with central nervous system disorders. And after acquiring the business last year, SK Siltron is adding jobs and capacity at its SK Siltron CSS subsidiary in Michigan to scale up production of materials for semiconductor components to make electric vehicles and power grids more efficient.

In 2019, SK Group Chairman Tae-Won Chey announced SK’s commitment to investing more than $10 billion in the U.S. over the next few years.

Gov Flag Ceremony with AMPAC Jeff Butler
Virginia Governor Ralph Northam (right) presentsAMPAC Fine ChemicalsPresident Jeff Butler with a flag that flew over the Virginia capitol. AMPAC Fine Chemicals, an SK pharmteco company, announced Tuesday it would continue adding jobs to its Petersburg, Virginia, site.

About AMPAC Fine Chemicals

AMPAC Fine Chemicals (AFC), an SK pharmteco company, is a United States-based, custom manufacturer of active pharmaceutical ingredients (APIs, Drug Substances) and registered intermediates. AFC solves problems through technology and innovation to reliably deliver quality products that save and improve lives. With over 75 years of experience, AFC has mastered challenging chemistries, enabling us to provide the highest quality services to our customers.

Our fully cGMP compliant facilities located in California, Texas and Virginia specialize in process development, scale-up, and production from kilograms to multi-ton quantities. AFC has expanded its capabilities to include contract analytical services. These services are conducted at AMPAC Analytical, located near our headquarters in California.

About SK Pharmteco

SK pharmteco is the single customer-facing team comprised of SK biotek and AMPAC Fine Chemicals with world-class facilities and technology, increased capabilities: energetic chemistry, continuous flow process, controlled substances, particle engineering, and high potency. With ~1000m³ of capacity across 6-cGMP manufacturing and development sites, including USA, Korea and Ireland as well as an Analytical Services facility in California. We have the capability and capacity to support all your API and Intermediate needs across the full lifecycle. We have been producing many of the world’s most recognized drugs for over 75 years.

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