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Friday, 04 August 2017 13:07

Neogen to invest $1.3 million in Lansing expansion

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LANSING — Neogen Corp. will invest $1.3 million into rehabbing a closed facility in Mid-Michigan.

The manufacturer of food and animal safety testing products based in Lansing will use the location to house its Ideal Instruments Inc. subsidiary.

The move comes after operations at Ideal Instruments’ current facility have reached capacity, Neogen Treasurer Jim Houthoofd told MiBiz.

While the new building — located at 1000 S. Hosmer St. in Lansing — offers Neogen an opportunity to grow, it needs a considerable amount of work to renovate, he said.

“It’s a good building but it’s bad because it’s a blighted brownfield type of situation,” Houthoofd said. “It has four good walls and that’s about it. The building meets the definition of a brownfield. It needed everything — HVAC, electrical, everything. We’ll be doing a lot of repair on the building, bringing it back to life and to a state that can be used.”

Neogen (Nasdaq: NEOG) will receive a $192,588 brownfield incentive from the city of Lansing over the next 19 years to help with redevelopment costs.

Once finished, the building will provide Ideal Instruments with 39,687 square feet of manufacturing space. The expansion will create 25 jobs, according to a statement.

Executives expect the project to be completed in 2019.

Neogen acquired Ideal Instruments in 1985, marking the first acquisition the company ever made over its more than 30-year history. All told, Neogen has acquired 46 companies, said Terry Maynard, investor relations manager at Neogen.

For Bob Trezise, president and CEO of the Lansing Economic Area Partnership, the project represents a positive example of further redevelopment in Lansing’s REO Town neighborhood.

“Years ago we laid the seeds of growth here and have been continuously nurturing them through our efforts ever since,” Trezise said in a statement. “Now we’re seeing the fruits of our labor flourish with new businesses, jobs, and people working in and enjoying the city.”

Read 842 times Last modified on Friday, 04 August 2017 13:23
John Wiegand

Staff writer

jwiegand@mibiz.com

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