Lexington County, South Carolina, September 3, 2025
News Summary
Nephron Nitrile, a medical-grade glove manufacturer in Lexington County, is struggling with nearly $1 million in unpaid property taxes and over $7.9 million in debts to contracting companies. Despite receiving tax incentives, the company is under financial scrutiny following an ongoing audit, leading to concerns about its operational stability. County officials remain unfazed by the tax situation, while Nephron attempts to secure financial stability through a $350 million credit line and the sale of its headquarters. The county has experienced a significant loss in tax revenue due to tax abatements for multiple companies, which raises questions about the effectiveness of such incentives.
Lexington County, South Carolina – Nephron Nitrile, a manufacturer of medical-grade gloves and an affiliate of Nephron Pharmaceuticals, is facing nearly $1 million in unpaid property taxes, with a total outstanding amount of approximately $950,108. The overdue balance includes around $125,000 in penalties, raising concerns about the financial health of the company.
The plant has received multiple tax incentives from Lexington County, which aimed to stimulate its operations and reduce tax liabilities. However, despite these incentives, Nephron Nitrile’s financial troubles have recently come to light. The company is currently experiencing significant debt issues, with unpaid obligations totaling millions to various contracting companies for labor. Furthermore, a tumultuous audit by the state’s revenue department raised concerns regarding the company’s financial practices.
If the company fails to resolve its unpaid property taxes, its properties could be subject to tax sale, putting additional pressure on its operations and stability. However, county officials are not overly concerned about the current situation or the possibility of tax sales ensuing from these late payments.
In addition to the unpaid property taxes, Nephron Nitrile’s financial struggles are compounded by claims from six contracting companies that have filed liens totaling over $7.9 million for unpaid work. The company has faced legal disputes regarding these claims. Furthermore, a lien was recorded against Nephron Sterile Compounding Center in July 2024, due to unpaid taxes amounting to $30,162.
The company’s situation is further complicated by an ongoing audit, during which Nephron has cycled through at least four financial executives. Previous years have seen Nephron facing similar issues, including late property tax payments in 2017 and 2018, resulting in significant penalties.
In an attempt to manage its financial stability, Nephron secured a $350 million credit line from WhiteHawk Capital, utilizing its properties as collateral. Moreover, the company’s headquarters is currently listed for sale at $340 million, indicating an effort to refinance and stabilize finances while planning to rent back the facility post-sale.
Despite the current challenges, Nephron has been a significant employer in Lexington County, with over 1,000 employees reported as of December 2022. Earlier tax incentive measures included the county reducing Nephron’s property tax assessment ratio from 10.5% to 4% to support its expansion efforts. Additionally, a $4.5 million grant and recurring tax credits from the S.C. Department of Commerce were approved to assist the company.
However, the county as a whole has been impacted, experiencing a loss of over $12 million in tax revenue during the previous fiscal year due to tax abatements for multiple companies, including Nephron. This raises questions about the overall effectiveness of tax incentives aimed at stimulating local economies.
Financial Summary
- Outstanding Property Taxes: $950,108
- Penalties Included: $125,000
- Total Debts Owed to Contracting Companies: Over $7.9 million
- Recent Credit Line: $350 million from WhiteHawk Capital
- Employees: Over 1,000
Contextual Background
Nephron Pharmaceuticals has faced scrutiny in the past for its financial practices, including extensive audits and previous late payment issues. The company has attempted to refocus its operations in a post-COVID climate, which has impacted its financial maneuvers. The current state of unpaid taxes and contracting issues suggest that ongoing challenges may continue to affect its operational stability.
Key Features of Nephron Nitrile’s Financial Situation
| Feature | Details |
|---|---|
| Unpaid Property Taxes | $950,108 |
| Penalties | $125,000 |
| Unpaid Debts | Over $7.9 million |
| Credit Line | $350 million |
| Employee Count | Over 1,000 |
FAQ Section
What is the total amount Nephron Nitrile owes in property taxes?
Nephron Nitrile currently owes approximately $950,108 in property taxes, including around $125,000 in penalties.
Why has Nephron Nitrile received tax incentives?
The tax incentives were granted to encourage the expansion of operations within Lexington County and reduce the company’s overall tax liability.
What issues has Nephron faced with unpaid debts?
Nephron has been dealing with unpaid debts totaling over $7.9 million to various contracting companies, leading to legal disputes and liens against the company.
Deeper Dive: News & Info About This Topic
HERE Resources
Nephron Pharmaceuticals Lists Headquarters for Sale-Leaseback
Additional Resources
- The State: Nephron Nitrile Facing Financial Issues
- Wikipedia: Tax Incentive
- The State: Nephron Nitrile Tax Details
- Google Search: Nephron Pharmaceuticals Financial Issues
- The State: Lexington County Financial Impact
- Google Scholar: Nephron Nitrile Liens
- The State: Nephron Employee Count
- Encyclopedia Britannica: Property Tax
- The State: Nephron Credit Line Information
- Google News: Nephron Nitrile Financial Challenges
Author: STAFF HERE LEXINGTON WRITER
The LEXINGTON STAFF WRITER represents the experienced team at HERELexington.com, your go-to source for actionable local news and information in Lexington, Fayette County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Woodland Art Fair, Crave Food and Music Festival, and Railbird Festival. Our coverage extends to key organizations like Commerce Lexington and Blue Grass Community Foundation, plus leading businesses in education, manufacturing, and technology that power the local economy such as University of Kentucky, Toyota Motor Manufacturing, and Lexmark. As part of the broader HERE network, including HEREBowlingGreen.com and HERELouisville.com, we provide comprehensive, credible insights into Kentucky's dynamic landscape.
