Novo Nordisk, which broke ground in March on a new $1.8 billion diabetes medicine production facility in Clayton, said this week the project will not be impacted following the layoffs of 1,000 workers.
Most of the job cuts will be made in Denmark, where the company is based. Research and development, headquarters staff and global commercial divisions will be affected. Officials blamed a challenging marketplace, especially in the United States, as the reason the jobs were being eliminated. Also the company has implemented a hiring freeze.
According to a press release and published reported, Novo Nordisk spokesperson Ken Ichausti said the job cuts and layoffs would not impact the expansion project underway in Clayton, saying the company remains committed to the new facility on Powhatan Road.
The company said the impact of the cost cutting moves on the Clayton insulin production facility would be minimal. An increased demand for diabetes medicines is anticipated in the US market.
The company’s CEO recently told Bloomberg news they lost a sizeable contract for a product made in Clayton but the loss of the contract has not affected the operations of the facility.
Novo Nordisk current employees more than 42,000 workers in 75 countries and has markets for its products established in 180 countries.
The new 833,000 square foot facility in Clayton with a footprint of 417,639 square feet – the equivalent to 7 football fields – is expected to be fully operation in 2020. It is expected to create 700 new jobs with an average salary of $68,000 – $22,000 higher than the current average salary, and $15,000 more than the median household income in Johnston County.
The new site is situated adjacent to Novo Nordisk’s existing 457,000 square foot plan, which has expanded several times since it was inaugurated in 1996.
Novo Nordisk’s local plant is one of the company’s strategic production sites responsible for formulation, filling and packaging of diabetes medicines. The plant also assembles and packages the company’s FlexPen and FlexTouch prefilled insulin devices for the U.S. market.
Once the new site becomes operational, the diabetes API production organization in Clayton will be named DAPI-US (Diabetes Active Pharmaceutical Ingredients – US). It will be part of the Danish diabetes API production organization in Kalundborg, which will be named DAPI-Denmark.
Novo Nordisk has its US headquarters in Plainsboro, N.J. The company has more than 5,000 employees in the United States.
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