US defence cuts an opportunity for generics firm KVK Tech
Under the deal – financial terms of which were not disclosed – KVK will buy the 460,000sqft site in June and begin adapting it in January next year.
The Newtown facility used to produce satellites for the US military. However, it has been earmarked for closure since 2013 as a result of cuts to US Government defence spending that prompted Lockheed to consolidate operations.
KVK is not going to be producting space defence technology. Instead the firm will use the site to make generic pharmaceuticals for the US market, including oral solid dosage forms – including tablets and capsules – from its portfolio of 25 products.
Hiring
The firm has operated since 2004 and will retain its existing manufacturing operations in the town where it employs a staff of 200 people.
CEO Anthony Tabasso told Bucks local News that: “We spent the last 12 months working with a single focus toward that goal. The goal was to acquire this facility and have it provide for KVK’s future expansion.”
He also told the paper that the firm plans to hire more staff, although he did not specify how many new employees.
“I can’t put a figure on it right now until I know where we stand from a regulatory perspective, but we didn’t buy 464,000 square feet to have 10 people over here” Tabasso said.
Lockheed will wind down satellite production and begin transferring work to its facility in Denver, Colorado later this year.
