AMPAC expanding Petersburg operation, adding 156 jobs

AMPAC Fine Chemicals plans to grow its Petersburg manufacturing facility, investing $25 million and creating 156 jobs, Gov. Ralph Northam announced Tuesday.

AMPAC manufactures active pharmaceutical ingredients (APIs) and is a partner with Richmond-based Phlow Corp., Virginia Commonwealth University’s Medicines for All Institute and nonprofit drugmaker Civica Inc., on a federally funded, $354 million contract to reduce America’s dependence on foreign supply chains and produce domestic production sources for medications and pharmaceutical ingredients at risk of shortages, including treatments for COVID-19.

Phlow was awarded the four-year contract by the U.S. Biomedical Advanced Research and Development Authority (BARDA) in May 2020. This January, Utah-based Civica Inc. announced it would establish its North American manufacturing operation in Petersburg, investing $124.5 million to establish a new facility next to Phlow’s future operation and AMPAC’s existing facility. With Tuesday’s announcement, AMPAC will expand its current plant, where it moved in 2019. Civica’s plant will convert active pharmaceutical ingredients produced by AMPAC and Phlow into vials and syringes to be used in hospitals.

“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,” Northam said in a statement. “This critical partnership between Phlow Corp., 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 was founded in 1945 and currently employs 109 people in Virginia, which competed for the project against California and Texas, where AMPAC has two other operations.

VEDP worked with the city of Petersburg, Virginia’s Gateway Region, the Community College Workforce Alliance and Dominion Energy Inc. to secure the project, and Northam approved a $640,000 opportunity fund grant and a $250,000 Virginia Investment Performance grant. VEDP’s Virginia Talent Accelerator Program will provide training and recruitment to AMPAC at no cost to the company.