Contract Pharmacal Corp., one of Long Island’s largest drugmakers, is expanding again.
The Hauppauge company plans to rent the portion of 110 Plant Ave. that it doesn’t already use. The 125,100-square-foot building would be renovated for use as offices and a warehouse.
The $1.7 million expansion was awarded tax breaks from the Suffolk County Industrial Development Agency last week. The incentive package totals $691,166, including a property-tax savings of $551,450 over 10 years, or a 27.5% reduction.
Garrett Gray, CPC’s real estate attorney, told the IDA board that the additional office and warehouse space will free up space in the company's factories for additional production. CPC has seen demand increase for its generic over-the-counter medicines, vitamins and nutritional supplements.
In addition, CPC introduced a line of hemp supplements sold under the Uleva brand earlier this year. It purchased a Florida seller of prescription drugs as well.
“CPC’s facilities are operating at their absolute maximum,” Gray said. “This project will allow CPC to continue to grow.”
The 48-year-old company operates from nine buildings in Hauppauge, where 1,300 people work. They earn, on average, $39,554 per year, records show.
The expansion project would add 15 jobs within two years, not counting hires for a new R&D laboratory, Gray said.
The IDA has assisted CPC since 2010, granting tax breaks for projects at four other sites and helping to keep the company from moving to Florida, according to its application for IDA help.
CPC has exceeded its hiring commitments by hundreds of jobs. It also has received assistance from New York State.
The company is owned by the Wolf family. The new space that it plans to occupy at 110 Plant Ave. had been used by defense contractor Air Industries Group.
CPC is a major player in the local pharmaceuticals industry, which has a total workforce of about 10,000. Pharma is the Island's largest manufacturing sector, with double the number of employees as the second-largest sector, instruments, according to a report by the IDA and the Workforce Development Institute in Albany.
IDA executive director Anthony J. Catapano said last week, "CPC is one of the cornerstones of Long Island's thriving pharmaceutical industry. Suffolk IDA is proud of the role we have and continue to play in their success."