US defence cuts an opportunity for generics firm KVK Tech

Under the deal – financial terms of which were not disclosed – KVK will buy the 460,000sqft site in June and begin adapting it in January next year.

The Newtown facility​ used to produce satellites for the US military. However, it has been earmarked for closure since 2013 as a result of cuts​ to US Government defence spending that prompted Lockheed to consolidate operations​.

KVK is not going to be producting space defence technology. Instead the firm will use the site to make generic pharmaceuticals for the US market, including oral solid dosage forms – including tablets and capsules – from its portfolio of 25 products.

Hiring ​

The firm has operated since 2004 and will retain its existing manufacturing operations in the town where it employs a staff of 200 people.

CEO Anthony Tabasso told Bucks local News that: “We spent the last 12 months working with a single focus toward that goal. The goal was to acquire this facility and have it provide for KVK’s future expansion​.”

He also told the paper that the firm plans to hire more staff, although he did not specify how many new employees.

“I can’t put a figure on it right now until I know where we stand from a regulatory perspective, but we didn’t buy 464,000 square feet to have 10 people over here​” Tabasso said.

Lockheed will wind down satellite production and begin transferring work to its facility in Denver, Colorado later this year.