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
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.”
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
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
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.
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
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.