Briefing: The end for AstraZeneca plant
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AstraZeneca will cease operations at its Otis Street facility in Westborough by the end of the year.
AstraZeneca announced last month that it will close its manufacturing plant in Westborough by the end of 2015. This means the town will lose its largest taxpayer, but it marked the final step in a wind-down of the facility that had previously employed more than 800 but had shrunk to just over 180 employees and contractors in recent years.
What's the financial hit to Westborough?
The biggest impact will be the loss of close to $2 million in taxes on the property and equipment inside the building, such as computer systems and manufacturing machinery. While the AstraZeneca property is valued at $19.4 million, the personal property inside is valued at $83.3 million. That comes out to $360,000 in tax revenue from the building and $1,548,547 from the equipment.
The revenue loss will shift more of the burden onto residents and other businesses starting in fiscal year 2017, according to Town Manager Jim Malloy, who explained that while it will be an adjustment “we will not cut services because of it.”
What's the town's plan?
The focus of town officials is to get a new owner as soon as possible. AstraZeneca spokeswoman Alisha Martin said the company will sell the 420,000-square-foot building with a “particular interest in buyers that would conduct manufacturing operations.”
“We told (AstraZeneca) we would work with them with any company that is looking at the property to expedite permitting and talk about what incentives we could offer,” Malloy said.
What does it mean to Westborough's employment base?
Some of the 180 employees and contractors will be phased out in March, while others will stay until the end of the year according to the company.
Malloy estimated that between 30,000 and 40,000 people are employed across the different companies in Westborough.
“While we are sensitive to those employees (who remain at AstraZeneca), we have a number of employers in town who employ more than 1,000 people,” Malloy said.
What does this mean for AstraZeneca?
The processing of the asthma treatment Pulmicort Respules at the plant will be consolidated at the company's facilities in Sweden and Australia to achieve “increased efficiencies in our global supply chain,” according to Martin. The company will retain a presence in the state with its research-and-development operations in Waltham and Cambridge.
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