APP Pharmaceuticals, Inc., a wholly owned subsidiary of
Fresenius Kabi Pharmaceuticals Holding, Inc., announced today a $38 million
expansion of its Grand Island,
New York manufacturing facility.

APP’s investment includes enlarging the manufacturing site by
13,000 square feet and adding an additional six production lines for injectable
products. Expansion measures are anticipated to last two years, with work on
the site beginning in June 2011. Currently, 580 people work at the Grand Island site and APP
plans to hire an additional 90 employees within the scope of the site expansion.

As a leading supplier of injectable pharmaceutical products
in North America,
APP offers one of the most comprehensive product portfolios used in hospitals,
long-term care facilities, alternate care sites and clinics. At its Grand Island facility, the company manufactures a variety
of injectable pharmaceutical products for the North
America market that encompasses four therapeutic areas: anti-infectives,
critical care, analgesia/anesthesia and oncology. The expansion will increase
APP’s manufacturing capabilities of injectable generics, enabling the company
to make a significant contribution to meeting the steadily growing market
demand for these products in the future.

“The Grand
Island facility has a longstanding expertise in the production
of injectable generics,” said Frank Harmon, Executive Vice President and
Chief Operating Officer at APP Pharmaceuticals. “The expansion of Grand Island demonstrates our commitment to Erie County and
the State of New York
to remain an active employer in the region.” In addition, the company
announced that Empire State Development will provide $1,187,763 in Excelsior
Jobs Program tax credits over a five year period, while the New York Power
Authority will assist with an allocation of 2,000 kW to bring the company’s
power costs in line with other out-of-state locations. Erie County
Economic Development Corporation will provide property tax, sales tax and mortgage
tax abatements.

“APP Pharmaceuticals will create good, quality jobs
that will help expand the important life sciences sector of our economy and
help Western New York continue its revitalization,” said Empire State Development President, CEO &
Commissioner Kenneth Adams. “We’re pleased that Empire State Development
could be a part of APP’s decision to remain in Grand Island.” Dr. Michael Schonhofen,
President, Science, Production & Technology, Fresenius Kabi added,
“The Grand Island facility forms part of a global supply chain network
that provides pharmaceutical products to the U.S.
and Canada.
The investment in this facility is an important step within our production
strategy. Through the expansion, the site will significantly contribute to the
continuous local supply of high quality injectable generics for the U.S. and Canada.” Built in 1970, APP’s Grand Island plant
obtained FDA certification that same year. The facility has been expanded a number
of times, most recently in 2005 when the company enhanced the site’s
manufacturing capability for aseptic filling and packaging, as well as for the production
of oncology drugs.