The University of Kansas in Lawrence has become a major magnet for life sciences companies from around the world. The resources of a major research university, not to mention its world-class medical school located in the Kansas City metro, just 30 miles to the east, attract knowledge-based companies.

OncImmune, a Europe-based life sciences company, will locate its North American headquarters and commercial lab in Lenexa, Kan. The company will develop and commercialize technology that has detected breast cancer up to four years earlier than a mammogram in initial evaluations.

OncImmune will create 120 new jobs within the next four years, in addition to 20 new positions at the University of Kansas (KU), in nearby Lawrence, and will invest $30 million into area lab operations.

The company was founded in 2003 to commercialize technology developed in the laboratories of John Robertson, a professor of surgery at Nottingham University in England.

“Professor Robertson always knew that the product would have to come to the United States to be commercialized,” said Tony Barnes, CEO of OncImmune. “The medical community here is the most aggressive at adapting new technology.”

OncImmune will collaborate with the KU School of Pharmacy, KU Higuchi Biosciences Center and the KU Medical Center to transfer its breast cancer technology to other forms of cancer such as lung, prostate and colon.

“KU’s commitment to developing a comprehensive cancer center, the cooperation of IBT reference laboratories, Missouri’s medical imaging programs and just the focus of the biosciences community here put Kansas City at the top of our list,” Robertson said.

OncImmune will designate Lenexa as its North American headquarters and will share commercial laboratory space with IBT, a reference laboratory already located in Lenexa.

Another European life sciences company, IndentiGEN, recently announced that it will form a new U.S. subsidiary in Lawrence. The new company will focus on the North American commercialization of IndentiGEN’s TraceBack DNA tracking system. IndentiGEN is a provider or DNA-based products for the agriculture and food industries in Europe.

TraceBack enables guaranteed verification of the source of meat products throughout the entire chain of production — from the animal of origin to the producer, meatpacker, food retailer, and ultimately to the consumer’s plate.

“We are proud to be able to introduce this service into North America,” said Patrick Cunningham, chairman of IdentiGEN Ltd. “We are especially pleased that our North American expansion will be led by Don Marvin, a life sciences executive with extensive experience in starting and growing entrepreneurial companies.”

TraceBack was developed at Trinity University in Dublin, Ireland, one of the most respected research universities in the world.

The new U.S. operation will start with about a dozen employees and grow proportionately to the success the company expects to have in the U.S. market during the next several years.

Packaging Manufacturer Locates in Kansas City

Clearly, there’s more to the Kansas economy than high-tech and agriculture. The state continues to attract traditional manufacturing companies, in part because of the economic development incentives offered by the state. A recent major addition to the state’s economic development incentive package came into being last summer, with new commercial machinery and equipment no longer subject to personal property tax in the state.

One company, Ranpak Corp., a major producer of paper packaging materials and systems, will lease a 50,000 square foot facility in Kansas City, Kan. The expansion will create 21 new jobs and result in about $1 million in capital investment during the next 3 years.

“Our need for an additional manufacturing facility coincided nicely with what Kansas City has to offer,” said Joe Miketo, vice president of operations for Ranpak. “Kansas City is similar to Cleveland in that it has a strong manufacturing base with a tremendous infrastructure to support our needs.”

Ranpak, headquartered in Concord Township, Ohio, in the Cleveland metro, was founded in 1972 with the goal of creating the first environmentally responsible packaging material to effectively cushion and protect products during shipment. Ranpak has grown to become a large and innovative producer of paper packaging materials and systems.

The Kansas Department of Commerce will contribute $21,000 in Kansas Industrial Training funding and has also approved Enterprise Zone Program tax credits.

The Kansas Industrial Training program offers direct financial assistance to pay a negotiated portion of the costs to train a company’s employees. Companies may apply the assistance toward such items as instructors’ salaries; meals, travel and lodging (including out-of-state or international travel); videotape development; textbooks and training manuals; supplies and materials; temporary training facilities; and curriculum development.

The Enterprise Zone Program offers corporate income tax credits for new job creation and qualified capital investment in Kansas. The entire state of Kansas is designated as an enterprise zone. Eligibility for this program depends on the type of business and the number of jobs created.

VVF Ltd., of Mumbai, India, purchase the Colgate Palmolive building in Kansas City, Kan., for its North American manufacturing headquarters. The company will purchase the building and equipment for $12 million and plans to invest another $6 million on plant upgrades.

“The Kansas City location offered many benefits,” said Kurussh Amrolia, president of VVF, citing the region’s rail and highway network. “You’re in the middle of the country, and you are business friendly.”

VVF makes soap and shampoo used by hotel chains and produces products for well-known brands such as Johnson & Johnson, Amway and Pfizer. The company plans to hire as many as 60 people with average salaries of about $35,000. Employment is expected to increase 10 to 15 percent each year.

Colgate is currently in the process of shutting down its operations by year end. The plant was established 100 years ago and merged with Palmolive in 1926.

According to local economic development officials, VVF selected the plant in Kansas City over other locations in Arizona, Texas and Canada.

VVF was started in India in 1939, and currently operates seven plants in India, two in the United Arab Emirates and one in Canada.

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