New corporate headquarters are a key part of Boehringer Ingelheim Vetmedica's expansion in St. Joseph.

The company officially announced Tuesday it will expand its animal pharmaceutical operation. The company is planning a $150 million investment that will create at least 124 jobs.

To be built on the main campus at the North Belt Highway and Gene Field Road, the project includes expanded manufacturing, more research and development activities and new technology throughout the campus.

In addition, a central administration building will be built.

The announcement could signal even more growth in the future, economic development officials said.

"This isn't just a piece of the company. To us, it looks like the whole thing has an incremental plan to go to a new level of production," said Ted Allison, president of the St. Joseph Area Chamber of Commerce.

Boehringer has been in St. Joseph for 27 years and has more than 600 employees at facilities in the area. President George Heidgerken said Boehringer is committed to St. Joseph.

"I feel confident about our growth strategy and ability to compete globally as an animal health research and development and manufacturing facility," he said.

The new jobs will include skill levels from high-level scientists to technicians, said Dr. Gary Clapp, director of the Institute for Industrial and Applied Life Sciences. It also strengthens St. Joseph's position in the global animal health industry, he said.

"This is another statement that we're on it," he said. "Even in difficult economic times, this industry continues to grow."

Boehringer is in line to receive $735,000 from Buchanan County's economic development fund. Of the forgivable loans, $100,000 is tied to building the corporate headquarters. Another $135,00 will be given to the company to encourage employees to move to St. Joseph.

In addition, Boehringer will be eligible for $100,000 if it chooses to buy the shell building in Mitchell Woods Business Park for a warehouse and distribution facility.

The St. Joseph City Council previously approved $160 million in Chapter 100 bonds, which will provide tax incentives for the company.

Mr. Allison said Boehringer is the flagship of the city's life science industry and a blessing because of its base of quality jobs.

"There are so many things about this company you have to like," he said.

Susan Mires can be reached at susanm@npgco.com.