Johnson & Johnson announced June 15 it will invest more than $1 billion in Jacksonville to strengthen its Vision operations.
The New Jersey-based healthcare company said in a news release it will scale its U.S.-based manufacturing, packaging and distribution capabilities as it builds a Jacksonville distribution center and invests in advanced manufacturing and packaging technologies to add capacity and meet demand for its ACUVUE-brand contact lenses.
“This is an investment in American manufacturing, in our workforce and in the long-term growth of this city, and it anchors our broader presence here in the state of Florida," said Joaquin Duato, chairman and CEO of Johnson & Johnson, during a June 15 media event to announce the investment.
"We have 11 sites across Florida that contribute approximately $6 billion to Florida's economy. Here in Jacksonville, our vision business alone is projected to generate more than half a billion in economic activity over the next three years.”
The media event was held at Johnson & Johnson Vision's contact lens manufacturing facility at 7500 Centurion Parkway in Deerwood Park in South Jacksonville.
In a news release preceding the event, Duato said the company was creating "next-generation manufacturing, packaging and distribution capabilities" that would strengthen the resilience of its U.S. supply chain "while helping more people see better and live better."
"This commitment reflects the confidence we have in our people, our technology, and our more than 40-year legacy of advancing eye health globally," Duato said in the release.
The announcement is part of Johnson & Johnson’s previously announced $55 billion U.S. investment in manufacturing, research and development, and technology through early 2029.
Construction of the new Jacksonville supply chain facility, identified for Airport Commerce Center in Northwest Jacksonville, is underway with the goal of being fully operational in 2028.
The announcement said the investment builds on the company’s $6 billion annual economic impact in Florida and supports the continued growth of its Jacksonville operations and its 3,500 area employees.
Johnson & Johnson established its Jacksonville presence in 1981 when it acquired a Jacksonville company called Frontier Contact Lenses.
“When a global leader like Johnson & Johnson chooses to grow here, it sends a powerful message. Jacksonville is a place where innovation thrives, talent succeeds, and investment delivers results," Mayor Donna Deegan said during the June 15 media event.
“Today's announcement is a reminder that Jacksonville's story is still being written. Together with strong partners like Johnson & Johnson, a talented workforce and a community that truly believes in progress, we are building a future that is stronger, healthier, and more prosperous for generations to come.”
Johnson & Johnson said that its Jacksonville operations have advanced eye health through innovative optical solutions, “helping to improve sight for more than 40 million patients in the U.S. and around the world.”
The company manufactures more than 1.7 billion ACUVUE contact lenses annually for U.S. patients.
It said it maintains more than 1.5 million square feet of manufacturing, research, distribution, and operations facilities in Florida.
“We have to be always of very high quality, and what we have been able to develop here in Jacksonville is this process that has enabled us to be worldwide leaders in contact lenses," Duato said during the event.
Incentives for assistance
Johnson & Johnson Vision Care is set to receive $12 million in city incentives to construct the packaging distribution facility and install new high-tech equipment at its Southside campus.
Jacksonville City Council gave final approval to the incentives with a 16-0 vote April 28.
Under the agreement with the city, Johnson & Johnson committed to investing $50 million for construction of the supply chain facility plus $500 million for manufacturing equipment.
The incentives would be two Recapture Enhanced Value Grants. One is a five-year, 60% grant of up to $1.5 million for the construction of the facility. The other is a five-year, 40% grant of up to $10.5 million for the equipment.
A REV grant is a refund on ad valorem tax revenue generated by a new development or property enhancement. It can apply to real property and tangible personal property.
The Northwest Jacksonville facility will be developed at Airport Commerce Center, north of Jacksonville International Airport, according to legislation.
The Suddath Cos. of Jacksonville is developing Airport Commerce Center. The industrial park is designed for five industrial buildings totaling about 3 million square feet of space west of Pecan Park Road and south of Arnold Road, also called Gold Star Family Parkway.
The property is west of Interstate 95 and west of the Jacksonville Port Authority North Jacksonville marine terminals.
Ed Randolph, city director of economic development, said Johnson & Johnson is working with a developer to build up to a 1 million-square-foot packaging and distribution facility in Northwest Jacksonville.
Suddath identifies a prospective 1.08 million-square-foot building as Phase 3. That phase is in city civil engineering plan review, a necessary step before development.
Those plans also show the proposed Building G at nearly 1.08 million square feet on a 118.53-acre site of which about 47.42 acres can be developed.
Randolph said the new equipment would be for Johnson & Johnson’s Deerwood Park manufacturing facility for disposable contact lenses.
According to legislation, the facility will add 10 jobs to Johnson & Johnson’s 3,500-employee workforce by the end of 2028. REV grants are tied to capital investment.
Under terms of the agreement between the city and Johnson & Johnson, the REV grants will be terminated if the company does not maintain 1,964 jobs through the term of the grants.
The summary states that Johnson & Johnson Vision Care manufactures 90% of the U.S. supply of ACUVUE contact lenses from its Jacksonville facility.
The summary says the city’s return on investment will be $4.86 for every $1 in incentives, according to a staff report. The report also says that for Johnson & Johnson, the incentives “are a material factor in its decision to expand its operations here in Jacksonville” after conducting a search for alternative locations.
‘I talk a lot about return on investment," Deegan said while speaking to reporters at the June 15 event. "The return on investment with this company has been 5 to 1, so great return on investment for the city's investment in this project.”
Jacksonville history
After Johnson & Johnson acquired Frontier Contact Lenses, the business was renamed Vistakon and operated under that name for three decades. The company transitioned to the name Johnson & Johnson Vision Care in the mid-2010s.
Johnson & Johnson Vision expanded beyond contact lenses in 2017 with a $4.3 billion acquisition of Abbott Medical Optics, which added ophthalmic products for cataract surgery, laser refractive surgery and consumer eye health to the business.
The surgical vision products are made outside of Jacksonville but the overall Vision subsidiary continues to be headquartered in Jacksonville.
Contributing writer Mark Basch provided information for this report.