Active pharmaceutical ingredients (API) manufacturer AMPAC Fine Chemicals (AFC) is preparing to inject $25 million into its existing location in Petersburg, VA to expand production as part of its collaboration in a US government-funded partnership with Phlow Corporation, Medicines for All Institute, and non-profit drug producer Civica Inc., Virginia Gov. Ralph Northam announced this week.

Phlow was contracted by the US Biomedical Advanced Research and Development Authority (BARDA) to manufacture essential medications with advanced manufacturing processes from the Medicines for All Institute at Virginia Commonwealth University (VCU). Civica palns to invest $124.5 million to open a facility next to the AFC and Phlow operations.

To support the effort, AFC is expanding its current facility in Petersburg. APIs made that the AFC and Phlow sites will be processed into vials and syringes for use in hospitals at the Civica plant.

“This critical partnership between Phlow Corporation, Medicines for All Institute, Civica Inc. and AMPAC will have a positive and far-reaching impact, ensuring greater access to high-quality, lifesaving medications while also creating much-needed jobs to support our economic recovery,” said Gov. Northam in a statement.

The opening of the expansion will create 165 new jobs. AFC currently has cGMP complaint facilities in Texas, California, and Virginia.

“Of our three AMPAC locations, Virginia offers an enabling environment for developing and sustaining growth in capacity and infrastructure demanded for the pharmaceutical industry,” said Dr. William DuBay, global vice president of research and development for AFC, in the release.

AMPAC Fine Chemicals is a part of SK pharmteco.

The COVID-19 pandemic has caused interruptions of supply chains for pharmaceuticals, prompting policymakers and industry to consider reshoring manufacturing of some essential drug products.