Argenta announced on Friday it will execute a strategic consolidation of its operations within the United States, a move that “will begin a phased ramp-down of activities at its Fort Dodge facility,” according to a press release.

Fort Dodge Mayor Matt Bemrich confirmed the report and indicated approximately 80 jobs will be affected by the closing of the AML Riverside location over the course of the next 12 to 24 months. The company’s facility in Shawnee, Kan. will ultimately take over all of the U.S. manufacturing and development work.

“It’s definitely not positive news for our (local) workers or our community,” Bemrich said. “We understand consolidations happen as companies look for ways to become more effective and efficient in today’s economy.

“We will do our best to take care of those impacted by this decision, and our city leaders have already contacted the IEDA (Iowa Economic Development Authority) and the Iowa Workforce Development office, as well as Iowa Central to help employees through the transition of being trained for or finding other jobs in the area moving forward.”

Bemrich expressed disappointment in Argenta’s decision, and his focus immediately turned to both the protection and transition period for local workers and the facility in the weeks and months to come.

“As mayor, I’d obviously prefer to see them stay. We’ve gone through something like this before, and we’ll do our best to capitalize on any new opportunities that may come along,” Bemrich said. “We will also work on a plan to repurpose the facility.

“We wish them well, and of course, they’re always welcome to change their mind.”

Matt Stober, the chief executive officer of Argenta, said that “consolidating our US operations into Shawnee enables Argenta to streamline its footprint, increase efficiency, and enhance our ability to serve customers with the highest levels of quality and reliability.”

“We have built a world-class development and manufacturing hub in Shawnee, one that allows us to develop products, run clinical studies, produce clinical supplies, and execute commercial launches all from a single location,” Stober said. “Our end-to-end, molecule-to-market offering is a game changer for our customers in terms of speed, quality, and consistency. This is a forward-looking investment in our operational model and long-term growth.”

Bemrich, who will be leaving office in January, added that incoming mayor Dave Flattery — a long-time Fort Dodge City Council member — was made immediately aware of the situation and will work to do what is best for those directly impacted by the announcement.

“There is obviously a lot of volatility in our economy now — not just in Iowa but globally,” Bemrich said. “All we can do is give it our utmost attention and try to capitalize on new or different opportunities as they are presented. Control what we can.

“Our community always rallies around its people. That will be our priority moving forward. There are a lot of moving pieces to this, and that will be the case for the next 12 to 24 months. I’m confident our city leaders will take this time to stabilize the situation as much as possible for the workers facing changes out of their control.”

In 2015, Argenta — a manufacturer of animal medicines based out of New Zealand — purchased the Boehringer Ingelheim Vetmedica Inc. Riverside plant in Fort Dodge. The company announced a $6 million investment and 12 new jobs at the AML Riverside location in 2020, and another $11 million expansion project in 2022.

The local maker of animal pharmaceuticals and health products originated as Fort Dodge Animal Health in 1912. In 2009, Pfizer acquired Wyeth, which owned Fort Dodge Animal Health. Pfizer later sold its operations locally to Boehringer Ingelheim, which had local control of the operation until 10 years ago.

The AML Riverside plant is located at 141 East Riverside Drive.

“Fort Dodge has played an important role in Argenta’s history,” Stober said. “We are grateful for the contributions of our colleagues there and are committed to supporting them through this change.”

Argenta is a global contract development and manufacturing organisation dedicated exclusively to animal health. Operating across the United Kingdom, United States, Europe, and New Zealand, Argenta partners with the world’s leading animal health companies to advance innovation from molecule to market.