Lilly Invests in New $2.5 Billion Production Site in Germany

US Pharmaceutical Company Expands Global Production Network in Alzey

17.11.2023 - Lilly announced today that it plans to invest €2.3 billion ($2.5 billion) in the construction of a new high-tech manufacturing facility in Alzey, Germany. The company also plans to invest up to €92 million ($100 million) in the start-up ecosystem of Germany's life science and biotech industry. The press conference was attended by company representatives as well as Vice Chancellor and Minister of Economics Robert Habeck and Minister of Health Karl Lauterbach.

With the planned plant in Alzey, Lilly intends to expand its global production network for injectable drugs and aids to reliably meet the growing demand for diabetes medications. Since 2014, Lilly has expanded its portfolio by a total of 29 drugs and plans to introduce further drugs in the coming years.

The new production site is scheduled to open in 2027 and will employ up to 1,000 highly qualified engineers, plant operators, and scientists. It will use state-of-the-art technologies, such as automation technology and high-speed production lines, to manufacture medicines. Pharmaceutical industry workers in Germany, with their extensive experience, will play a critical role in strengthening the supply of incretin-based medicines from Lilly. Construction of the facility, starting in 2024, will see up to 1,900 additional jobs created.

Edgardo Hernandez, Executive Vice President and President, Lilly Manufacturing Operations commented, "This state-of-the-art injectable manufacturing site with the latest technology will enable us to continue to reliably provide safe, high-quality medicines."

With the planned plant in Alzey, Lilly will operate a total of six manufacturing sites in Europe, including one in nearby Fegersheim near Strasbourg in France, creating operational synergies. Thanks to the early involvement of Germany Trade & Invest (GTAI) and the trusting cooperation throughout the entire period, Lilly was able to find the best possible location for this major project from a range of attractive options. Lilly's investment in Alzey is subject to the completion of approvals from the state and local authorities.

Robert Habeck, Vice-Chancellor and Federal Minister for Economic Affairs and Climate Protection, said: "The decision to locate here is good news for Germany as a business location. It creates new and sustainable jobs, shows the confidence of companies in the attractiveness of our pharmaceutical and industrial location and contributes to improved healthcare for our citizens."

Karl Lauterbach, Federal Minister of Health, emphasized, "This investment strengthens the Federal Government's efforts to make Germany more attractive as a location for pharmaceuticals. This shows that Good innovative products can be reliably developed and produced in Germany."

In the past three years, Lilly has announced investments of more than €10 billion ($11 billion) in production facilities worldwide. Lilly will continue to invest in expanding its global manufacturing footprint to meet the anticipated demand for potential new medicines to treat diabetes and obesity, Alzheimer's disease, cancer and autoimmune diseases.

Ilya Yuffa, President of Lilly International said, "With our investment plans in Alzey, we want to take collaboration and innovation in Germany and Europe to a new level and pursue one goal together: finding sustainable solutions for patients."

Lilly in Europe will strengthen its relationships with the scientific and public sectors, support the life science start-up ecosystem and diversify Lilly's growing presence in Europe. The goal is to accelerate the development of innovative medicines that can improve people's lives around the world.

With regards to how these funds will be distributed, Yuffa commented "We have not allocated the $100 million yet, but it is our commitment to use this in a variety of ways. Whether its through other venture funds, or incubators, or lab space or even collaboration with us. We are very interested in accelerating science and innovation in the great institutions here in Germany."


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