Kendra Johnson named among USA TODAY’s Women of the Year for Delaware
State Rep. Kendra Johnson, who has made it her mission to better the lives of fellow Delawareans, is honored as one of USA TODAY’s Women of the Year.
- Pharmaceutical giant Merck may build a $900 million manufacturing facility near Greenville.
- The state of Delaware has offered Merck a $30.2 million grant to encourage the company to choose the Wilmington-area location.
- If Merck accepts the grant, the company would be required to create 375 full-time jobs and operate the facility for at least 20 years.
Pharmaceutical giant Merck received a $30.2 million grant from the state in an effort to sway the company to build its $900 million manufacturing facility in the Wilmington area.
The taxpayer-funded grant is the highest amount that has been doled out to a company since Bloom Energy’s approval in 2011.
Merck & Co. has not confirmed whether or not it will choose Delaware as its place to expand, but business leaders in Delaware are optimistic about what the potential move could mean for the state.
Merck’s potential $900 million investment
Merck & Co. is a global health care company that specializes in the production and distribution of vaccines, pharmaceuticals and animal health care products.
Merck has been looking for a location to set up their newest manufacturing facility, which will produce drug substances and products with a targeted operational start date of 2030.
According to plans shared with Delaware Online/The News Journal via a Freedom of Information Act request, the company is considering constructing a $900 million multi-building complex for labs, manufacturing and distribution operations at the Chestnut Run Innovation and Science Park near Greenville.
Under the conservative estimates listed in the plans, the facility would bring roughly 375 full-time jobs to the area.
The company is reportedly still considering other locations, but is bound by nondisclosure agreements to reveal more about the other possibilities, as reported by the Delaware Business Times.
If Merck chooses the Delaware site, the company would be locked into a 20-year lease at the CRISP campus.
This wouldn’t be Merck’s first venture into the First State, however. The company already has an animal health facility in Millsboro.
$30.2 million approved for the company
The Delaware Council on Development Finance unanimously approved the grant application on Monday, Feb. 24.
The grant was divided into $4.7 million worth in job performance grants and $25.5 million in capital expenditure grants. The performance grants are dispersed after the company makes its investments into the facility and workforce.
Although nothing is promised yet, Michael Fleming, president and CEO of the Delaware Bioscience Association, remains optimistic and said that this deal could cement Delaware as a winner in the area in terms of attracting industrial and scientific investment.
“This new facility would be a tremendous boost for and validation of the growth and momentum of our dynamic life science industry,” Fleming said. “We look forward to welcoming Merck and applaud their interest in strengthening U.S. manufacturing and our supply chain right here in Delaware.
Susan Colby, senior manager of communications for the Delaware Prosperity Partnership echoed that the move would boost Delaware’s portfolio.
“This project would reinforce Delaware’s standing in the global biopharmaceutical ecosystem, and we are excited by the potential opportunities it would provide Delaware residents and businesses,” Colby said.
As for what Merck has to say about the grant, Ned Ehrbar, associate director of Merck’s global media relations kept it vague, stating via email: Merck is considering Delaware as a potential location to develop a new commercialization and launch facility.
What is the CRISP Campus?
The CRISP campus, located at 984 Centre Road just outside of Greenville, has long been a mainstay in the state’s evolving life sciences investment.
Formerly a site for DuPont research, the 164-acre site was purchased by MRA Group in 2021 with hopes of transforming the site into the leading campus for Delaware’s life science laboratories and research facilities.
Amenities for the campus will include a hotel, childcare and fitness centers, an outdoor amphitheater and accommodations for restaurants.
Chemical manufacturing company Solenis expanded its research and development facilities into the CRISP campus in late 2022 and precision oncology company Prelude Therapeutics cut the ribbon on their new headquarters at CRISP in February, 2024. DuPont is also leasing 190,000 square-feet of space at its former space.
Last month, the developer group broke ground on the Marriott Residence Inn, which will feature 127 rooms with both short- and long-term stay options, food services, a full-service bar, meeting spaces and outdoor patios
MRA Group declined to comment on the recently approved grant for Merck.
How do these grants get approved?
Awarding these grants worth tens of millions of dollars involves a process that is relatively new, with various “checks and balances” in place, but limited transparency at times.
The Delaware Economic Development Authority was created by the General Assembly under former Gov. John Carney, intended to promote economic activity in Delaware. It is chaired by CJ Bell, the director of the Delaware Division of Small Business.
The Council on Development Finance is an advisor to the Delaware Economic Development Authority, and is responsible for conducting public hearings before the authority issues any financial support to potential projects.
The Delaware Prosperity Partnership, a nonprofit state economic development agency, often vets applications or potential investment opportunities and brings them to the Council. As previously reported by DelawareOnline, since DPP is not technically a part of the state government, it is not subject to Freedom of Information Act requests.
In the seven years of its existence, the Council on Development Finance has approved every Strategic Funds application that has been brought to it by the Delaware Prosperity Partnership.
The $30 million grant offered to Merck will be reimbursed after the company makes its investment – in this case, a nearly $1 billion one.
In 2021, the Council on Development Finance approved $19 million for WuXi AppTec, a Shanghai-based company that develops and manufactures drugs for pharmaceutical clients, to build its manufacturing campus near Middletown’s Amazon fulfillment center.
Gov. Matt Meyer has gone on record against these types of taxpayer-funded grants, announcing during a Delaware State Chamber of Commerce annual dinner that his administration will see “the use of cash assistance de-emphasized,” as reported by Spotlight Delaware.
Meyer’s office did not respond to a request for comment about the most recent grant funding.
Molly McVety covers community and environmental issues around Delaware. Contact her at mmcvety@delawareonline.com. Follow her on Twitter @mollymcvety.