US pharma giant Eli Lilly plans to build a $2bn plant in western Germany, it has been reported.
The new plant would be Eli Lilly’s first major production complex in Germany.
Citing sources close the matter, Reuters reported that the site will make diabetes drugs and will create more than 1,000 jobs, including an expected boost in sub-contractors and regional suppliers.
“This is about a four-digit number of new employees,” one source is quoted as saying.
Eli Lilly declined to comment on the whereabouts of the new site for the plant, but a series of news conferences are scheduled to take place in the town of Alzey, 71km southwest of Frankfurt. The region in which Alzey is located is known for its wine-growing industry, the largest of the 13 designated wine regions in Germany.
Foreign direct investment (FDI) figures are on a downward trend in Germany, with net inflows reaching $11.05bn in 2022, down from a recent peak of $72.02bn in 2018, according to UNCTAD’s World Investment Report 2023.
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Several German cities, including Berlin, Munich and Düsseldorf, remain attractive FDI destinations for life science investors looking to bring supply chains closer to local markets.
In the pharma and healthcare sector, other businesses have similarly expressed their interest in investing in the country. In March, Switzerland-based La Roche introduced plans to build a $633.8m diagnostics production facility at its existing site in Penzberg. The new project will expand the current campus by 14ha and is expected to become operational by 2027.
Eli Lilly is headquartered in Indianapolis, US, and has more than 41,000 employees globally.