Johnson & Johnson to spend $55bn on four manufacturing plants in US

Trump administration has been threatening duties on pharmaceuticals firms who have invested heavily in Ireland and worldwide

Johnson & Johnson plans to spend over $55bn (€50bn) to build four plants in the US, it said on Friday, as a threat of drug import duties from the Trump administration forces companies to expand their manufacturing operations domestically. Picture: Mark Ralston/AFP via Getty Images)

Johnson & Johnson plans to spend over $55bn (€50bn) to build four plants in the US, it said on Friday, as a threat of drug import duties from the Trump administration forces companies to expand their manufacturing operations domestically.

The new plants will be built over the next four years, including in Wilson, North Carolina, where the pharmaceutical giant officially broke ground on Friday. The drug and device maker said the investment represents a 25% increase compared to the last four years.

Last month, drugmaker Eli Lilly  announced its plans to invest in the country, as companies brace for the impact of a potential 25% tariff on pharmaceutical imports. Eli Lilly and Johnson & Johnson have significant operations in Ireland, and US president Donald Trump said in the White House during his meeting with Taoiseach Micheál Martin last week that Ireland lured them with its tax policies.

Johnson & Johnson employs 6,000 people in Ireland at 10 facilities across Cork, Dublin, Limerick, Galway, and Mayo. 

Mr Trump, who campaigned on a promise to boost domestic manufacturing, has been piling pressure on drugmakers since taking office to move medicine production to the United States.

Companies in other sectors, such as iPhone-maker Apple have also made manufacturing announcements in recent weeks.

J&J's site in Wilson, where it plans to invest more than $2bn (€1.84bn), is expected to create 5,000 jobs during construction, and more than 500 positions across the state. The site will focus on producing medicines used for treating cancer, immune-mediated and neurological diseases, it said.

The company said it already has more manufacturing facilities in the US than in any other country. It plans to expand several of its existing sites in the US and build new infrastructure for research and technology.

J&J, however, did not disclose details about the expansion plans or the location of its other planned facilities in its statement.