Bayer To Bring More Jobs To N.J.

bayer healthcare(AP) WAYNE, N.J. New Jersey is expected to gain several hundred jobs in its already formidable pharmaceutical sector when Bayer HealthCare moves several units to the state over the next 18 months.

Bayer HealthCare, part of the German chemical and drug maker Bayer AG, said Wayne and Montville would be headquarters for its U.S. pharmaceutical commercial operations, as well as its global oncology and specialized therapeutics units.

The towns will also be home to Bayer HealthCare's U.S.-based global drug development groups and other business support functions, the company announced Thursday.

The moves are part of a global restructuring that Bayer said will allow it to integrate operations with Schering AG, a German company that Bayer acquired in June. Schering's U.S. subsidiary, Berlex Inc., has offices in Montville and Wayne.

New Jersey offered incentives for Bayer HealthCare to relocate. The state Economic Development Authority agreed Monday to pay the company a rebate amounting to 65 percent of state income taxes paid by transferred workers, The Star-Ledger of Newark reported in Friday's newspapers.

The rebate is expected to be worth $12.5 million over 10 years, based on 350 workers earning an average of $125,000 a year, the newspaper said.

State offices were closed Friday in observance of Veterans Day; a message seeking comment from the authority was not immediately returned.

The head of the governor's Office of Economic Growth, Gary D. Rose, told the newspaper that the move was "an election by Bayer to locate their pharmaceutical headquarters within a very large and vibrant pharmaceutical community."

New Jersey's drug and medical technology industry accounted for over 60,000 jobs in 2005, according to a survey of the 25 members of the HealthCare Institute of New Jersey.

Bayer is no stranger to New Jersey. Its consumer care division, based in Morristown, is responsible for such well-known products as Bayer aspirin, Aleve, and Alka-Seltzer.

New Jersey's gain comes at a cost to two other states. Bayer HealthCare said it would close research operations in West Haven, Conn., and Richmond, Calif. Some of the workers will be offered a chance to relocate to New Jersey. About 600 mostly research jobs will be eliminated in the United States, with about 200 more job cuts in the future.

Connecticut offered Bayer a $60 million incentive package to keep the West Haven site open and add jobs, according to a statement from Gov. M. Jodi Rell and other officials.

Bayer said the moves are part of a plan to consolidate the company's research organizations at three sites: Berlin and Wuppertal in Germany, and Berkeley, Calif.

© 2006 CBS