US pharmaceutical company Eli Lilly has announced plans to invest $2.5bn in a factory in western Germany.
The plant, in the town of Alzey in the Rhineland-Palatinate, will meet growing demand for the company’s diabetes drugs, and recent obesity treatments Mounjaro and Zepbound.
Ilya Yuffa, the president of Lilly International, said the investment was intended to “spark a new era of collaboration and innovation in Germany and the EU, defined by our shared purpose to find lasting solutions for patients”.
Lilly said it plans to use automation and high-speed manufacturing lines at the site to increase productivity.
The move is part of an $11bn programme of investment that Lilly has made in manufacturing sites over the past three years. The company said it would continue to invest in the expansion of its global manufacturing to address the growth expected from new medicines to treat diabetes and obesity, Alzheimer’s, cancer, and autoimmune conditions.
Robert Habeck, the German minister for Economic Affairs, said Lilly’s decision would create “future-oriented jobs”.
“The new location will make an important contribution to industrial value creation in Germany with high-tech production facilities and research and development,” he said.
Construction will begin next year, and the plant is expected to be in business in 2027.