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Kedrion expansion plans downsized

A blood-products manufacturer has downsized a planned expansion of its Melville plant, officials said.

Kedrion will add 18,000 square feet to 155 Duryea Rd., instead of 48,000 square feet. The existing structure has 105,000 square feet of space.

The move will reduce construction costs from $23 million to $7.5 million, according to Carl Nerlich, a consultant to the company. Equipment purchases would be $15 million rather than $42 million.

Nerlich also said Kedrion would create 30 jobs, not the 80 promised last year in return for government aid. However, the company still plans to retain 150 workers it will inherit by purchasing the factory from Grifols, also a producer of blood products.

Nerlich, in a letter to Suffolk County on the smaller expansion, cited "less funding than initially anticipated from [Kedrion's] Italian parent." Last year Kedrion officials said the work done locally could be done in Italy.

The changes mean Kedrion will receive $1.9 million in tax breaks from the county's industrial development agency, not $4.8 million, said IDA executive director Anthony Manetta.

The project is now valued at $30 million, down from more than $80 million when the incentives were initially offered in August.

Kedrion also is in line to receive 1,716 kilowatts of low-cost electricity from the New York Power Authority and $3.3 million in state tax credits from Empire State Development Corp.

Power Authority spokesman Michael Saltzman said Monday, "In general terms, a company that doesn't meet its job commitments risks a potential reduction in its allocation."

An Empire State official added it "is aware of the change in the scope of Kedrion's project and our incentives will be adjusted proportionally."

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