Eli Lilly to invest billions in new US plants
The entrance to the Eli Lilly factory in Kinsale, Co Cork. Picture: Niall Carson/PA
Eli Lilly said it will invest $5bn (€4.3bn) to build a manufacturing facility in Virginia, the first of four new US plants the drugmaker has planned as it moves to expand domestic production and hedge against potential tariffs.
Global pharmaceutical companies have been increasing US investment to bolster manufacturing capacity after US president Donald Trump urged the industry to make more medicines domestically rather than importing active ingredients or finished medicines.
Trump has said he would start with small pharma tariffs and could raise them to as high as 250% to boost US production.
Eli Lilly has major operations in Kinsale, Co Cork, and Raheen in Limerick. The Kinsale plant makes the active ingredient in the company's blockbusting weight-loss drug Mounjaro, which is then sent elsewhere for development. Ingredients for other drugs are also made at the Cork site. In May, Mr Trump called for an end to Americans paying higher drug costs than elsewhere in the world.
He wants the US to be given the status of “most favoured nation” in relation to drug costs, and claimed he would order drug companies to reduce prices.
Speaking to the  earlier this month, the executive vice president and president of Lilly International, Patrik Jonsson, said the US company has been investing heavily in Ireland in recent years, and will continue to invest.
"Our commitment to Ireland is not a flash in the pan by any means,” said Mr Jonsson. "All of our sites here will continue to play a significant role in our supply chain for medicines today, and also tomorrow."
Earlier this year, the drugmaker outlined plans to spend at least $27bn (€23bn) on four new US manufacturing sites to counter potential drug import duties. Since 2020, the company has committed $50bn (€42.6bn) in capital expansion.
The new facility in Goochland County, Virginia, will produce active pharmaceutical ingredients for cancer, autoimmune, and other advanced therapies.
It will also expand Lilly’s capacity to make antibody-drug conjugates, a targeted class of cancer treatments. The plant is expected to be completed within five years.
"By expanding our domestic capacity, we are building a secure, resilient supply chain," said CEO David Ricks.
Lilly said the Virginia site will create more than 650 jobs for skilled workers, including engineers and scientists, and 1,800 construction jobs.
The company plans to announce the locations of the three remaining US plants later this year, and expects to begin making medicines at all four facilities within five years.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
