Johnson & Johnson invests $2 billion to build manufacturing campus in North Carolina

Johnson & Johnson announced Oct. 1 that it will invest more than $2 billion to build a new pharmaceutical manufacturing campus for innovative biologics in Wilson, N.C., which is expected to create 420 jobs in surrounding Wilson County.

“We welcome this tremendous investment by Johnson & Johnson as it expands its global manufacturing footprint,” said Gov. Roy Cooper. “Life sciences leaders continue to select North Carolina because our workforce will help them successfully produce innovative medicines that will make a profound impact on our state and patients worldwide.”

Dapo Ajayi, innovative medicine supply chain VP at J&J, adds, “A strong, global supply chain is crucial, and we purposefully invest to ensure our medicines reliably and efficiently reach patients worldwide. We’re investing in capacity and new technologies to enhance our capabilities and ensure a resilient supply chain for the future. North Carolina is an important hub for biopharmaceutical manufacturing and talent, and we’re pleased to join this thriving life sciences ecosystem and become part of the Wilson community.”

New jobs at the campus will include analysts, engineers, microbiologists, scientists, specialists, managers and senior leaders. While salaries will vary by position, the average annual wage is $108,823, which exceeds Wilson County’s average of $52,619. These new jobs could create a potential, annual payroll impact of more than $45.7 million for the region.

J&J’s project in North Carolina will be facilitated, in part, by a job development investment grant (JDIG) awarded to Janssen Biotech Inc., a subsidiary of J&J, which was approved by the state’s Economic Investment Committee. Over the course of the grant’s 12-year term, the project is estimated to grow the state’s economy by $2.3 billion. Using a formula that accounts for $1 billion of the company’s investment, as well as new tax revenues generated by the new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $13,666,000, spread over 12 years. State payments only occur following performance verification by its commerce and revenue departments that the company has met its incremental job creation and investment targets.

The project’s projected return on investment of public dollars is 262%, which means the state receives $3.62 in state revenue for every dollar of potential cost to the state. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.