KEY POINTS
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Bayer plans to invest $2.2 billion in a new pharmaceutical manufacturing site in New Albany, Ohio.
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The project is expected to generate about 1,500 construction jobs and 600 permanent high-value jobs.
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Bayer expects the first manufacturing module to become operational in 2031, followed by a second module in 2034.
Bayer announced plans Oct. 2 to build a new pharmaceutical manufacturing site in New Albany, Ohio, in a multiyear expansion aimed at increasing production capacity for patients in the United States and global markets.
The project will be located in the New Albany International Business Park. The company did not announce a construction start date, project team or expected completion date for the overall campus.
However, the company said the New Albany investment adds to more than $7 billion in U.S. pharmaceutical research and development and manufacturing spending during the past five years.
Why Is Bayer Investing $2.2 Billion in Ohio?
The planned campus is part of Bayer's longer-term growth strategy for its pharmaceuticals division and its U.S. operations, the company said.
Bayer described the United States as a key manufacturing base, innovation hub and its fastest-growing pharmaceuticals market. The company said the Ohio investment builds on more than $7 billion in U.S. pharmaceutical research and development and manufacturing expenditures over the past five years.
The new campus is intended to help Bayer serve demand for medicines in the United States and abroad while adding capacity and resilience to its global product-supply network.
Manufacturing construction starts in the US are down 2.8% year-to-date through September, according to ConstructConnect Chief Economist Michael Guckes.
A rendering of Bayer is shown at its announced New Albany International Business Park location. Image: Bayer
What Will Bayer Build in New Albany?
Bayer described the project as a flexible, modular manufacturing campus that will combine drug-substance and drug-product production. The site is expected to use advanced digital and automation technologies.
The initial manufacturing portfolio is planned to support medicines in oncology, cardiovascular care and renal care. Bayer said the first module will focus on drug-substance manufacturing and is expected to become operational in 2031.
In related news, ConstructConnect reported that Eli Lilly broke ground Sept. 21 on a $6.5 billion active pharmaceutical ingredient manufacturing site in Houston.
Bayer added that a second module for drug-product manufacturing is planned to follow in 2034. The phased approach would allow Bayer to expand the campus over several years while adding different stages of pharmaceutical production. Keep in mind that announced projects are not a guarantee that a project will actually move forward into construction.
How Many Jobs Could the Ohio Project Create?
The project is expected to support about 1,500 construction jobs during development and approximately 600 permanent, high-value positions once the site is operational, according to Bayer.
Bayer said the facility will require manufacturing expertise and a skilled workforce. The company also plans to connect the site with a U.S.-based collaboration system linking academic research and advanced manufacturing expertise.
Bayer did not disclose the specific occupations, wage levels or hiring schedule for the anticipated 600 jobs.
How Will the Site Fit Bayer's U.S. Network?
The New Albany campus will complement Bayer's U.S. pharmaceuticals headquarters in Whippany, New Jersey, and existing sites in Pittsburgh, Pennsylvania; Berkeley, California; Cambridge, Massachusetts; Research Triangle Park, North Carolina; and San Diego, California.
Holger Weintritt, head of Product Supply at Bayer's Pharmaceuticals division, said the Ohio facility will strengthen the company's global product-supply network alongside continued investment in existing manufacturing sites around the world.
Bayer CEO Bill Anderson said the investment reinforces the company's commitment to the United States as a manufacturing base and innovation hub. Sebastian Guth, global chief operating officer of Bayer Pharmaceuticals and president of Bayer U.S., said the expansion is intended to help the company meet demand from U.S. patients and customers.
Additional details of the manufacturing construction project were not included in the statement from Bayer.
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