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Posted on: October 3, 2022

Clayton sells regional pretreatment facility to Novo Nordisk for $34 million

Wastewater Pretreatment Facility

The Clayton Town Council has accepted a $34.25 million bid from Novo Nordisk to purchase the R. Steven Biggs Regional Wastewater Pretreatment Facility.  

The bid was unanimously accepted by the council during their regular meeting on Oct. 3 through an upset bid process.   

“After careful consideration, the Town of Clayton has accepted an offer from Novo Nordisk to purchase the R. Steven Biggs Regional Wastewater Pretreatment Facility at its market value. This is a win-win-win scenario for the town, the company and the citizens of Clayton,” said Town Manager Richard Cappola.   

According to Cappola, the town plans to use the proceeds from the sale to fill the estimated $25 million funding gap in the Sam’s Branch Water Reclamation Facility project.  

“Affordable water and sewer rates are of continued importance to the Town Council,” said Cappola. “By selling this facility and investing the proceeds in the new water reclamation facility, we will incur less debt and reduce borrowing costs. These savings will help to minimize the need for future water and sewer rate increases.”  

Cappola added that when the facility was originally constructed in 2019, it was intended to be a regional asset supporting existing and future biopharmaceutical industries. Due to a recent expansion announcement and the growing scale of Novo Nordisk’s current operations, the facility currently only serves the company with no ability to serve future users.   

“Given that water is a critical component in the production of our medicines, this purchase of the wastewater pretreatment facility ensures that Novo Nordisk will have the infrastructure necessary to continue our 24/7 production of medicines to meet the global manufacturing demands of today and for the future,” said Chad Henry, Corporate Vice President and General Manager of Novo Nordisk manufacturing. 

Wastewater Pretreatment Facility Drone

Both parties concluded, because the facility was only being utilized by Novo Nordisk, that it made the most sense for the company to own and operate their own facility.  

“We appreciate our ongoing partnership with Novo Nordisk and their continued commitment to grow lifechanging jobs in our community,” said Cappola. “We are also grateful for the assistance the town has received in recent years from the General Assembly, U.S Economic Development Administration, the State of North Carolina, and Golden Leaf Foundation in developing our wastewater infrastructure.”

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