Wednesday, Sep 13, 1995
-- New site mirrors rapid growth at Genentech: company now occupies 1.8 million square feet of space, compared to 500 square feet in 1976 --
SOUTH SAN FRANCISCO, Calif., September 13, 1995 -- Genentech, Inc. (NYSE:GNE) today announced that it has completed its final negotiations surrounding the purchase of land in Vacaville, Calif., from Chevron Land and Development Co. With the 100-acre land purchase now complete, the company plans to begin preliminary site preparations for its more than $150 million first phase of development, and expects to finish the first phase by late 1998.
The new manufacturing facility, which will be located in the Vaca Valley Business Park, is representative of Genentech's continuing expansion and growth. Compared to 1976 when only two employees occupied 500 square feet of space, the Company now has 21 buildings in its South San Francisco site, totaling 1.8 million square feet for its current 2,750 employees.
The first phase of the new facility in Vacaville will be approximately 300,000 square feet and should eventually support approximately 300 jobs in addition to several hundred construction jobs.
"We would like to express our gratitude to the city of Vacaville whose professional approach and support during the complex permitting and negotiation process confirms that we have chosen the optimal location for expansion of a biotechnology company such as ours," said Jim Panek, Genentech's vice president of Facilities and Engineering. "Genentech is committed to California, and our decision to locate our new manufacturing site in Vacaville reflects that commitment. We look forward to bringing new jobs to the area and strengthening relationships with the local community."
During the last few weeks of the final negotiations, Vacaville city officials, including City Manager John Thompson, Assistant City Manager David Van Kirk, and City Attorney Charles Lamoree, contributed an extra effort to bring the deal to a close.
"We are pleased that negotiations for Genentech's land purchase have been successfully completed. We believe that Genentech's economic and technological contributions will greatly benefit not only our community, but the state of California as a whole," said John Thompson.
Genentech is part of a flourishing health care technology industry in California that is estimated to generate $3.7 billion in new construction and more than 100,000 new jobs in the state between 1992 and 1996.
The Company announced its decision to locate the new facility in Vacaville in October 1994 after exploring almost 50 sites in several states and in Europe.
Two New Buildings Added to South San Francisco Campus
In addition to the upcoming construction of the Vacaville facility, Genentech recently has added 225,000 square feet of space in South San Francisco with the $75 million construction of two new buildings: a new administrative building, and a new laboratory and process science facility. This new construction demonstrates the Company's continued rapid growth, as evidenced by the October 1992 completion of an $85 million Founders Research Center; the 1993 expansion of a $37 million manufacturing facility; and today's announcement of the Vacaville land purchase.
The two new buildings, the administrative building (65,000 square feet) and the laboratory and process science facility (160,000 square feet), collectively will increase Genentech's office space by 14 percent and will be able to house up to 450 of Genentech's employees. With the addition of the two new buildings, the Company will now occupy 21 buildings totaling 1.8 million square feet.
"Genentech is a growing company, witnessed by our significant expansion since our inception, and that growth continues today. Just over the past five years, we have added nearly 900 new jobs," said Panek. "As we have expanded, we have received tremendous support from the local South San Francisco community, which has provided a business-friendly atmosphere conducive to growth."
Construction of the laboratory and process science facility was recently completed at a cost of $61.5 million. The Company expects to complete construction of the administrative building by the end of the year at an estimated cost of $10 million.
The vast majority of Genentech employees are located at the Company's South San Francisco headquarters where its key operations, such as administration, research and development, and manufacturing, are based.
Genentech, Inc. is a leading biotechnology company that discovers, develops, manufactures, and markets human pharmaceuticals for significant unmet medical needs. The Company has headquarters in South San Francisco and is traded on the New York and Pacific stock exchanges under the symbol GNE.
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