Lilly announces $2.5bn high-tech manufacturing site in Alzey, Germany

Eli Lilly and Company (NYSE: LLY) unveiled its plan to build a $2.5 billion state-of-the-art manufacturing site in Alzey, Rhineland-Palatinate, Germany. This new facility, earmarked for parenteral (injectable) product and device manufacturing, will significantly bolster Lilly’s capacity to meet rising global demand for its diabetes and obesity medications.

A Commitment to Global Health and Innovation

The Alzey facility represents Lilly’s ongoing commitment to patient care. “Every investment into our manufacturing capacity is a renewed commitment to patients today and those who may need our medicines tomorrow,” stated Edgardo Hernandez, executive vice president, Lilly manufacturing operations. This high-tech site will feature the latest technology, ensuring the safe and quality delivery of medicines worldwide.

Lilly’s European Operations and Impact

With the Alzey site, Lilly will operate six manufacturing locations in Europe, including a facility in Fegersheim, France. This expansion in Europe is set to create operational synergies and foster stronger university and government relationships, boosting the early-stage life science ecosystem and diversifying Lilly’s presence in Europe.

Lilly to expand global injectable product network with new German facility

Workforce and Economic Benefits

The Alzey site, starting operations in 2027, is expected to create 1,000 high-skill jobs, including engineers and scientists, utilizing advanced technology like automation and high-speed manufacturing lines. An additional 1,900 jobs are anticipated during construction, set to commence in 2024. Lilly’s investment in Alzey is contingent upon final government permitting and local approvals.

Government Perspectives

Dr. Robert Habeck, vice chancellor and federal minister for Economic Affairs and Climate Action, lauded the decision, highlighting its contributions to Germany’s industrial value creation and healthcare improvement. Similarly, Prof. Dr. Karl Lauterbach, federal minister of health, noted the investment’s alignment with Germany’s efforts to strengthen its pharmaceutical sector.

Lilly’s Global Manufacturing Investments

Lilly’s recent investments surpass $11 billion globally in manufacturing to support its innovative medicine supply, including treatments for diabetes, obesity, Alzheimer’s disease, cancer, and autoimmune conditions. These expansions aim to meet the growing demand for new medicines.

Investment in Germany’s Biotech Ecosystem

Alongside the manufacturing site, Lilly is investing up to $100 million to expand its presence in Germany’s biotech sector. These investments, focusing on venture capital funds in biotech and life sciences, will foster incubator and accelerator engagements, and strengthen ties with academic and innovation partners. This initiative aims to accelerate the development of innovative medicines globally.

Lilly’s substantial investment in Alzey signifies a major step in enhancing pharmaceutical manufacturing and health outcomes in Germany and the European Union, underscoring the company’s commitment to healthcare innovation and patient care.