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Long Island Regional Economic Development Council Announces ESD Commissioner Adams & Co-Chair Law Tour $50 Million Expansion Project at Amneal Pharmaceutical

$3 million LIREDC award leverages significant private investment to create 400 new, local jobs and spur economic growth on Long Island
(June 15, 2012)

Long Island Regional Economic Development Council Announces ESD Commissioner Adams & Co-Chair Law Tour $50 Million Expansion Project at Amneal Pharmaceutical

The Long Island Regional Economic Development Council today announced that Empire State Development President, CEO & Commissioner Kenneth Adams joined with Amneal Pharmaceuticals, LLC CEO Chintu Patel, Regional Council Co-Chair Kevin Law, and state and local elected officials to tour the company’s $50 million expansion project currently in progress. The project, which is being supported by a $3 million award through Governor Andrew M. Cuomo’s Regional Council initiative, will create 400 new local jobs at an average salary of $42,000 and spur economic growth with $84 million in payroll over the next 5 years.

“This significant investment by Amneal Pharmaceuticals is great news for our region from a company that cares just as much for its community as it does about its bottom line,” said Kevin Law, President of the Long Island Association and Regional Council co-chair. “I applaud the Governor and Empire State Development for investing in this priority project of the Long Island Regional Council which allows Amneal to grow and helps solidify the long term strength of our region’s advanced manufacturing sector.”

“Amneal Pharmaceuticals is making the right decision to invest in the smart and dedicated workforce we have here on Long Island,” said Stuart Rabinowitz, President of Hofstra University and Regional Council co-chair. “Our regional council of cross-sector experts identified advanced manufacturing as one of the top priorities for investment because we have both the technical capacity and the workforce talent readily available right here in our communities. We look forward to continuing to identify and foster industry partnerships that will drive our regional economy forward.”

This significant investment by Amneal involves the renovation and expansion of an existing 121,000 square foot building to 443,000 square feet, along with the construction of a separate 42,000 square foot facility immediately adjacent at the 50 Horseblock Rd. location in Brookhaven. The company will purchase and install capital equipment and furniture for the new facility, which will greatly increase its production and distribution operations. The incentivized project will create 400 jobs and retain 752 jobs over 5 years in Suffolk County. The project is underway with an anticipated completion date of early 2014.

“The $3 million from Empire State Development represents a vote of confidence in our ability to significantly increase employment for Long Islanders and otherwise benefit the communities in which we do business," said Chintu Patel, Amneal CEO. “This major expansion of our Brookhaven facility will also allow us to handle over 20 new product introductions per year, establishing Amneal as the largest pharmaceutical manufacturer on Long Island.”

Last year, a total of $785 million was awarded through the Consolidated Funding Application (CFA) for job creation and community development projects consistent with each region’s strategic plans. As part of that process, Amneal Pharmaceuticals was awarded $3 million from Empire State Development’s Regional Economic Development Capital Fund to support the company’s expansion and renovation. The project was supported by the Long Island Regional Council as a transformative project due to its proposed creation of 400 jobs and the retention of one of the country's largest generic pharmaceutical manufacturers on Long Island.

Empire State Development President, CEO & Commissioner Kenneth Adams said, “This project is a victory for everyone involved – the company, the state, and most importantly, the people of Long Island. The Regional Council has fostered a successful partnership between Amneal Pharmaceuticals and the state that will result in more jobs for the local community and help drive the regional economy forward.”

The Regional Economic Development Council Capital Fund Program and the Empire State Economic Development Fund together make available $170 million of capital grant funding for the State‘s Regional Economic Development Council Initiative, which helps drive regional and local economic development across New York State in cooperation with ten Regional Economic Development Councils. Funding is available for capital-based economic development initiatives intended to create or retain jobs; prevent, reduce or eliminate unemployment and underemployment; and/or increase business activity in a community or region. In addition, $4 million from the Urban and Community Development Program is reserved for 1) development of mixed-use properties in highly distressed areas (article 18 of the general municipal law) or economic development zones or 2) central business district or commercial area improvements.

Senator Lee Zeldin said, “We in the 3rd Senate District benefit greatly from having such a successful and expanding company like Amneal Pharmaceuticals right here in our backyard. This investment will serve my constituents, Long Island, and New York State as a whole by helping Amneal expand and create much needed high-tech jobs. I commend Governor Cuomo, my colleagues in the State Legislature, Empire State Development Commissioner Kenneth Adams, Long Island Regional Economic Development Council Co-Chairs Stuart Rabinowitz and Kevin Law, and Amneal Pharmaceuticals’ CEO Chintu Patel, for their work in bringing this investment here to the 3rd Senate District and contributing to our region's economic recovery."

Suffolk County Commissioner Joanne Minieri said, “Amneal Pharmaceuticals’ commitment to Suffolk County is great news for our communities and Long Island’s regional economy. Projects like these prove the Regional Council process works as local stakeholders are making the right decisions to create much-needed jobs and generate economic activity. I applaud Governor Cuomo and Commissioner Adams for their vision and dedication to foster public-private partnerships, and Chintu Patel of Amneal for continuing to grow his business here in Suffolk County.”

Frederick C. Braun III, Chairman, Brookhaven Industrial Development Agency said, “As Chairman of the Town's Industrial Development Agency, it's exciting to participate in a project that is expected to create 400 new jobs and a significant capital investment in the expansion of Amneal's plant. We were instrumental in the initial construction of the building by Arrow Electronics in 1986. We look forward to being a partner with Amneal for the next ten to fifteen years.”

Established by brothers Chintu and Chirag Patel in 2002, Amneal Pharmaceuticals, LLC has expanded to two Long Island facilities and continues to experience significant growth. In 2008, the company purchased the assets of Interpharm Holdings, Inc., including facilities in Hauppauge and Brookhaven where they now develop, manufacture and distribute generic drugs to well-known US wholesale and retail chains. Major customers include Cardinal, McKesson, Walmart and Walgreens. Known as “Generic’s New Generation”, Amneal is the 7th largest generic drug firm in the US (based on the number of prescriptions filled according to June 2011 IMS data) and employs over 1,100 people; 752 currently on Long Island.

To learn more about each regional council and their economic development plans, visit www.nyworks.ny.gov.

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