Mercks Expansion Experience Vaccine Manufacturing Facility Durham, NC

1
Mercks Expansion Experience Vaccine
Manufacturing FacilityDurham, NC

• John Wagner, Plant Manager
• Merck Manufacturing Division
• 3/21/07

2
Agenda

• Location Site Selection
• Brief Plant Overview
• Experience

3
New Location/Site SelectionProcess

• Gain consensus on selection criteria
• Establish weighting of criteria for initial
  screens using mathematical model
• Run database / model of 135 municipalities across
  the 15 states
• Determine consensus Top 15 and re-run model
  scenarios on Top 15 only
• Gain consensus on preferred 3-5 areas for more
  detailed analysis and property search
• In Parallel
• Survey top areas for available properties
• Conduct local assessment of top candidates
• Select final 2 for recommendation to Management
• Commence economic incentive negotiations
• Select and purchase best site

4
Category Weightings and Sensitivities
5
Top 15 Locations Rankings with Sensitivities
6
New Location/Site SelectionDetailed Location
Analysis Property Search

• Consultants perform on the ground detailed
  analysis
• Interview a cross section of local companies
  pharma non-pharma
• General business and employment climate
• Supportive infrastructure
• Perform detailed workforce demographic analysis
  of immediate area
• Job specific analysis
• Available workforce within range of commute times
• Workforce training programs
• University curriculums
• Property Search
• Desktop screen of available properties
• Survey top areas for available properties
• Conduct site visits to finalist sites
• Obtain substructure information on final 2 sites

7
Site EvaluationsInterim Recommendation
??
Recommendation Select North Carolina (Treyburn
Corporate Park) pending outcome of incentive
negotiations
8
Site EvaluationsRecommendation
Recommendation North Carolina (Treyburn
Corporate Park)
9
New Location/Site Selection Why Durham, NC

• Why North Carolina RTP Area?
• University Infrastructure
• Quality of Life
• Supportive Business Environment
• Cluster of Biopharma Presence
• Support from State and Local Officials
• Industry Specific Workforce Training Program
• Why Treyburn Corporate Park?
• Environment we were looking for
• Transportation
• Right Size and Configuration

10
What Has Gone Well??

• Support from State and Local Officials
• Tremendous support from State and Local Economic
  Development Programs
• Supportive Business Environment
• Participative permitting process
• Cluster of Biopharma Presence
• Presence of existing network of suppliers
• Quality of Life
• No shortage of employees that want to relocate to
  NC
• Those here dont want to leave
• Workforce
• Plentiful and highly productive commercial trades
• Availability of mechanics/technicians
• Industry Specific Workforce Training Program
• Great experience with Durham Tech Support

11
What Could Have Gone Better??

• Availability of specialty trades for construction
• Early local recruitment took time to gain
  traction

12
Would We Have Made the Same Decision Again??

• WE DID!!
• 100 MM expansion announced in December