A promising turn in the local economy

Napans needn’t look far this week to see silver lining to the mostly gloomy economic news.

Dey LP, the south Napa pharmaceutical manufacturer, has abandoned its plans to abandon Napa.

Last year, Dey, which makes devices for those struggling with asthma and other breathing difficulties,  was acquired by Swiss pharmaceutical giant Mylan. Mylan quickly made it clear it would consolidate its U.S. operations in part by shifting Dey jobs to the East Coast, where the company hasd other holdings.

This was seen as a major blow to the local economy. Dey employed upwards of 500 people in jobs that helped diversify the local economy in that they are not wine-related and that they are in the manufacturing sector. Furthermore, Dey employees were known to be generous with their time supporting local charities, and the company made substantial financial contributions to local little leagues and other causes.

This week, Mylan officials acknowledged they have decided to keep the Napa plant going, and will retain a workforce here of 300 to 400 people.

The reasons for the turnaround certainly are based in the rapidly changing fortunes of companies in the pharmaceutical sector, as well as Mylan’s improved understanding of its U.S. holdings and the preferences of its employees.

But local officials deserve a share of the credit, as well. Representatives from the city of Napa, Napa County and the governor’s office have spoken to Mylan officials about Dey’s importance and encouraged the company to stay.

City officials were in touch with Mylan immediately after the departure announcement, and worked patiently with the company as it reconsidered its options. Napa Mayor Jill Techel and City Manager Mike Parness have said other regions offered Mylan sweet tax and development deals to shift jobs — offers the city did not make — but ultimately the company was persuaded to stay. Mylan has not had much to say about its thinking, but apparently factors in Napa’s favor included the existence of a loyal and capable Dey workforce and the opportunity to merely revamp — rather than build from scratch — a manufacturing plant.

The company’s decision will help stabilize the Napa economy in uncertain times, and that is very welcome news.