Investing.com -- Eli Lilly and Company (NYSE:LLY) on Thursday announced a $1.8 billion investment to expand its manufacturing operations in Ireland.
This decision will enhance the production of biologic active ingredients, particularly for treatments targeting Alzheimer's disease and obesity.
The investment will be directed toward two major expansion projects in Ireland. The first of these is a $1 billion expansion at Lilly's Limerick site.
This development will double the company's initial investment announced in March 2023, bringing the total commitment to a substantial $2 billion.
Once complete, the Limerick facility will become a pivotal component in Lilly's global manufacturing network, focusing on producing biologic active ingredients for its recently approved Alzheimer’s treatment and other biologic medicines.
The expansion will introduce advanced technologies such as machine learning, artificial intelligence, and automated robotics to ensure precise and efficient manufacturing processes.
It will also generate 150 new high-skilled jobs, increasing the workforce at Limerick to 450 employees by the time production begins in 2026.
The project is currently awaiting planning approval, with a formal application to be submitted to the Limerick City and County Council.
Simultaneously, Eli Lilly is investing $800 million to enhance its Kinsale facility, which began operations last year.
"Investment in these two locations in Ireland (Limerick & Kinsale) shows Lilly's work is not done -- even if US drug shortages seem to calm down, the expectation of high, ongoing demand remains," said analysts at BMO (TSX:BMO) Capital Markets in a note.
This expansion will bolster the facility’s capacity to meet the growing demand for medications addressing diabetes and obesity.
The Kinsale site employs a digital-first approach and continuous manufacturing technology to produce complex peptides. It also boasts the largest privately owned solar farm in Ireland, which supplies a significant portion of the facility’s power.
“These investments will boost the production of some of our medicines, helping millions of people with diabetes, obesity and Alzheimer's disease live the healthiest lives possible," said Edgardo Hernandez, executive vice president and president of Lilly Manufacturing Operations
Additionally, Lilly’s Global Business Solutions center in Cork has seen growth, with employment levels expected to exceed 2,000 by the end of 2024, underscoring the company’s ongoing investment in Ireland.