Updated: Chinese pharma manufacturer seeks $19 million from state for Middletown location


A Chinese pharmaceutical company will seek $19 million in incentives from the State of Delaware for a pharmaceutical products manufacturing site in Middletown.

The agenda for a meeting on Monday, June 28 of the Delaware Council and Development Finance list the company seeking the financial package as STA Pharmaceutical USA.

STA is requesting a Delaware Strategic Fund grant of $19,050,365 for the facility that could employ 1,200.

STA specializes in contract research and contract manufacturing.

The Council on Development Finance sends its recommendations to the state Director of Small Business.

Earlier this month, the Middletown Town Council gave preliminary approval to the project, located on a 187-acre tract in a zoned industrial area.

Up until the time the agenda was released, the identity of the company had not been disclosed.

The grant is the largest sought in a decade, mirroring the package for Fisker Automotive. The state lost much of that investment when the hybrid carmaker filed for Chapter 11 bankruptcy protection.

Another financial package went to Bloom Energy.

Much of that cost of Bloom’s financial package, which the Delaware General Assembly approved,  came in the form of a long-term contract for electricity produced from Bloom fuel cells. Unfortunately, electricity prices dropped in the meantime, meaning Delmarva Power customers were paying more than the market rate for power from the fuel cells.

Since that time, the state has focused on more modest grants for companies like JPMorganChase and Amazon.

Both the Bloom and Fisker financial packages came after the state was hit hard by closing both of its auto assembly plants.

In advance of the STA  hearing, additional information concerning the matters and applications to be considered at the hearing may be obtained from, and written comments may be submitted to, the Council in care of the Authority, Attn: Jordan Schulties, Division Director, Division of Small Business, at business@delaware.gov.

The Council may go into closed executive sessions when discussing certain types of financial information.

STA has the bulk of its facilities in China and operates a manufacturing and research site in San Diego. WuXi STA, a subsidiary of WuXi AppTec.

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