US President Donald Trump announced Tuesday he is giving American camera company Kodak a $765 million federal loan to pivot the company to manufacture generic pharmaceutical ingredients.
Kodak, the president told reporters at the White House, will now generate “as much as 25% of all active ingredients needed to make generic drugs in the USA” as it prepares to launch Kodak Pharmaceuticals.
“It’s a breakthrough in bringing pharmaceutical manufacturing back to to the United States,” Trump said, noting that the loan will mark his thirty-third use of the Defense Production Act.
The shift in mission will result in the creation of 360 jobs at Kodak’s Rochester, New York and Minneapolis, Minnesota facilities, Trump said.
Jim Continenza, Kodak’s executive chairman, said the company is “proud to be a part of strengthening America’s self-sufficiency in producing the key pharmaceutical ingredients we need to keep our citizens safe.”
“By leveraging our vast infrastructure, deep expertise in chemicals manufacturing, and heritage of innovation and quality, Kodak will play a critical role in the return of a reliable American pharmaceutical supply chain,” he said in a statement.
Kodak stock jumped 38.79% in after-hours trading following Trump’s announcement.
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