Quick Overview

  • Medical device manufacturer Steris announced on Wednesday that it will invest $600 million to build a chemical manufacturing and distribution center in North Carolina for healthcare and pharmaceutical customers. The company is headquartered in Dublin.
  • Steris plans to relocate its existing operations in St. Louis and Plymouth, Minnesota, to a new site in Sanford, North Carolina, southwest of the Raleigh-Durham metropolitan area. According to a press release, the 600,000-square-foot campus will create 335 jobs and is expected to become operational within the next two to three years.
  • This is Steris's largest investment in a single location. The North Carolina Economic Investment Committee approved a Job Development Investment Grant for the project earlier this week, allowing for a maximum reimbursement of $3.2 million over 12 years.

In-Depth Analysis

This investment is part of a larger trend of international companies expanding their U.S. footprint to get closer to key customers and ease trade pressures.

Switzerland-based Octapharma said last week it will invest $1.5 billion to build its first U.S. plant in Rock Hill, South Carolina, focusing on plasma-derived medicines. Pharmaceutical companies AstraZeneca and Novartis have committed billions of dollars over the coming years to build new or upgrade existing facilities in the U.S.

Founded in 1985, Steris is a global supplier of infection prevention chemical products, including indicators, pharmaceutical detergents, disinfectants, and sterilization equipment. According to its latest annual report, the company has 16 manufacturing sites worldwide, seven of which are located in Texas, Ohio, Alabama, Minnesota, Missouri, California, and Pennsylvania.

Steris said it chose North Carolina as its core manufacturing hub because the region offers "critical technical knowledge and skill availability." The investment is also supported by the state, Lee County, the City of Sanford, and its economic development programs.

"Creating a center of excellence for formulated chemicals will enable us to accelerate innovation, expand capacity, and optimize our chemical manufacturing and distribution network in the U.S.," said Dan Carestio, Steris's president and CEO, in a statement. "Our customers save lives every day, and with this investment, we will be better positioned to meet their needs for years to come."

According to the press release, the new site will include advanced manufacturing, research and development, laboratories, warehousing, and distribution operations. The average annual salary is expected to be $68,704.

According to the state, these new jobs could bring over $23 million in annual wage impact to the region. The project's return on investment for public funds is projected at 325%, meaning for every $1 invested by the state, an estimated $4.25 in revenue is expected.

As part of the Job Development Investment Grant, the state said it will transfer up to $357,000 into an Industrial Development Fund to support infrastructure upgrades in rural communities.