Kannapolis lab to expand, add jobs

Natalie Barger prepares to test the density of a subtance in the research and development laboratory at Harmony Labs in Kannapolis. Photo by Emily Ford

Mike Kane

A scientist emulsifies a product at Harmony Labs in Kannapolis, which expects business to grow by 50 percent in 2010. Photo by Emily Ford

Bee Vang, a research and development scientist with Harmony Labs in Kannapolis, mixes chemicals under a ventilation hood. Photo by Emily Ford

By Emily Ford

eford@salisburypost.com

KANNAPOLIS — Even on the heels of a recession, sales at Harmony Labs could grow by 50 percent this year in part because the company moved into the prescription drug market seven years ago, the CEO said.

While many manufacturers have laid off workers or even closed their doors for good, the pharmaceutical and cosmetics manufacturing lab in Kannapolis will hire up to 40 employees this year.

"We recognize that the opportunity to grow in this environment is special for us," said Mike Kane, president and CEO.

During the recession, Harmony Labs continued to acquire new customers, diversify and grow, Kane said. Investments made by the company for the past several years are key to its current success, he said.

In 2003, when Raleigh-based Dogwood Equity owned the company, Harmony upgraded its facilities, systems and quality control procedures and entered the prescription drug market.

"We had an outstanding platform to grow," Kane said.

At the time, the skin care market was surging, with increased consumer interest in sun protection and anti-aging products.

During the recession, however, skin care sales slowed. But Harmony's over-the-county and prescription segments continued to thrive, Kane said.

Now owned by Arkansas-based private equity firm Stephens Capital Partners, the company also benefits from offering a turnkey operation, he said.

"We can really be the total solution provider," he said.

From initial concept through testing and regulation to final packaging, Harmony Labs can provide customers with every step required to take a product to market, he said.

In pharmaceuticals, Harmony can start serving customers at the Phase III clinical trial stage.

Harmony operates a 130,000-square-foot headquarters in a former Walmart in Kannapolis, as well as two facilities in Landis.

The growth forecast for 2010 reflects "excellent work by the employees here," said Kane, who joined the firm in June 2009.

New jobs at Harmony will include positions in manufacturing, quality control and chemistry.

Harmony will add jobs throughout the year as additional manufacturing requirements are scheduled, he said.

The company, which specializes in making products like acne treatments and sunscreens, will move raw materials, receiving and quality control labs from Landis to Kannapolis.

The Landis facilities will continue to manufacture powder-based products.

Harmony currently uses about 80 percent of the building on North Cannon Boulevard. The company will upfit the remaining space, plus add up to 10,000 square feet of warehouse space.

Harmony doesn't have a relationship with the N.C. Research Campus yet, but Kane said he's interested.

The $1.5 billion life sciences complex in downtown Kannapolis has indirectly benefited Harmony, which received a grant through Rowan-Cabarrus Community College to provide in-house training for employees, Kane said.

"The state is paying closer attention to this area," he said.