What will loss of Jubilant Cadista jobs mean for Salisbury? Local leaders react.

With Jubilant Cadista's announcement Thursday it will close its Salisbury location in June, city and county officials were left speculating what that will mean for the area's economic portfolio.

The city's 11th0largest employer according to Zippia will shed over 200 jobs following a downsizing of 80 positions in 2022 from 300 openings. The move had David Ryan of the Salisbury Wicomico Economic Development recalling the long relationship with the company starting in 2005. The question now is how the city plans to rebound by enticing other businesses to relocate to replenish the job pipelines.

"We've had a long relationship with them, so the news was certainly a disappointment but not terribly surprising," Ryan said. "There had been some management changes since then, and my first concern is every single job counts. Our goal, locally, is to help these employees transition to other opportunities and work with the company and hopefully make that plant attractive to another employer."

According to Ryan, that starts with seeking a company in need of a large manufacturing space for its operation.

More on the closure Jubilant Cadista announces closure of its Salisbury operations. Everything to know.

The pipeline of projects SWED cultivates is comprised of both new companies and industries attracted to the Eastern Shore as well as current businesses looking to expand their operations. Ryan noted that later this year and early next year, the area can look forward to good news on the economic front.

"(In that timeline), we see some positive developments in terms of new companies coming into the market with additional jobs. Our focus right now is with the existing employees and transitioning them to new opportunities," Ryan said.

'Always looking for manufacturers'

While Salisbury Mayor Randy Taylor characterized the decision by the pharmaceutical company as a "gut punch" from one of the city's oldest employers, he assured the public the city is actively working with organizations like SWED.

"We will work with leaders like Dave Ryan and his organization to make the situation better and work our way to a solution," Taylor said. "We're always looking to entertain manufacturers, and I think we have an area where (businesses) want to relocate. There are some challenges, like the raising of the minimum wage, which may impact some profitability. But the pharmaceutical industry is very competitive, and it can be difficult to exist long-term."

Over the last few years, the company noted, the U.S. generics market has been witnessing significant pricing pressure, leading to significant losses at Jubilant Cadista since FY22 onwards.

Further, following the status change of Jubilant Generics Limited’s Roorkee facility in India, the company expects the exports from that facility to the US market to "increase in a meaningful and gradual manner," the statement noted. As of now the Roorkee, India facility was exporting only one product, Risperidone, for the U.S. market. The generic drug holding is a subsidiary of Jubilant Pharma Ltd.

"This is a moment where we need to pause and assess why companies are leaving, and we're saddened for the employees," said Salisbury City Council President D'Shawn Doughty. "This opens the dialogue as a city to discuss what the city can do to attract corporations to come here. This needs to be one of our top priorities for the sake of our residents for their income."

Salisbury's drinking water: Salisbury found to exceed safe 'forever chemicals' levels in drinking water by 400 percent

Doughty also noted announcements like this are the reason city and county officials should always be looking to facilitate the discussion on economic development and market nuances in the city employers.

Salisbury and Wicomico County offer a strategic location

According to both SWED and Maryland Department of Commerce data, Salisbury and Wicomico County have a strategic location along the East Coast and situated at the crossroads of Maryland’s Lower Eastern Shore, Wicomico County serves as a hub for commerce, industry, health care, education and transportation.

"Wicomico County’s private sector industries generate $5.1 billion in economic output. Major employers are Chesapeake Shipbuilding, Delmarva Power, Jubilant Cadista Pharmaceuticals, K&L Microwave, TidalHealth, Perdue Farms, Salisbury University and Tishcon," the state's 2023 economic brief states.

The county, including Salisbury, also boasts a 5,223-acre State Enterprise Zone and a 129-acre zone in Fruitland.

Wicomico County is the number one agricultural producing county in Maryland and ranks fourth in broiler chicken production. Popular crops include corn, soybeans, wheat and vegetables. In addition to agriculture and poultry, it has a health care, educational sector and industrial base.

More on the recent session in Annapolis 'Maryland's win'? Gov. Moore assesses record of 2024 General Assembly session

This article originally appeared on Salisbury Daily Times: Salisbury leaders react to news that Jubilant Cadista will close site