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LANCASTER, PA-Lancaster Laboratories Inc. plans to construct a 50,000-sf building that will connect with its existing two buildings at its headquarters campus at 2425 New Holland Pike. The estimated construction cost is $16 million.

The addition will be located on the south side of Route 23, at the Geist Road intersection. A Lancaster Labs spokeswoman says it, like an earlier expansion, will connect via an enclosed bridge that crosses Route 23 to join Building 1 on the campus. The land also contains space for a fourth building, she tells GlobeSt.com, which is contemplated sometime in the future.

The new three-story addition will house a new reception area, laboratory modules and staff offices. In the opening phase of construction, the first-floor reception area and the third floor will be completed in late 2008. The remaining space on the first and second floors is scheduled for completion during 2008 and 2009.

“We anticipate especially strong demand for testing in support of biotechnology and new drug products,” says Wilson Hershey, president, in a statement. “The additional space will allow us to move parts of our existing pharmaceutical and biopharmaceutical testing operations to the new building and also to develop a new reception area serving the entire complex.”

This is the company’s 11th expansion. Earl Hess founded Lancaster Laboratories in 1961 in 2,500 sf on his father’s farmland, which is the firm’s current setting. The company, a subsidiary of Waltham, MA-based Thermo Fisher Scientific, provides analytical services to the pharmaceutical, biopharmaceutical and environmental industries. The Lancaster subsidiary recently acquired a company in Ireland.

Thermo Fisher is funding this expansion. The governor’s action team has assembled an incentive package of up to $560,000 for the project through the Pennsylvania Department of Community and Economic Development. It includes an opportunity grant of up to $250,000, as much as $100,000 in customized job training assistance and $210,000 in job creation tax credits.

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