Merck invests €250 million in production value chain in China

Merck opening ceremony.

Merck is the first multinational enterprise to dedicate a large-scale green-field investment (€170 million) to the production of pharmaceuticals on China’s Essential Drug List.

The initial €80 million investment in the pharmaceutical plant was announced in 2013 and has been realised. The additional investment of €90 million represents the next phase of Merck’s pharmaceutical production plans for China to meet forecast increased demand for medicines to be produced at the site. The first drugs from the plant inaugurated on 4 November are expected to be delivered to patients in the second half of 2017. Along with the investment of around €80 million by the Life Science business sector of Merck, this adds up to a total of investment of €250 million in its production value chain in China to create better access to health. These strategic investments further support Merck's expansion in China, which is expected to become the world’s second-largest pharmaceutical market by 2018, and enables the company to support the goals of China’s 13th Five Year Plan by investing in technology and developing local talent.

“China is of strategic importance to Merck as a key driver of our sustainable growth. In line with our long-term commitment to China, Merck has always been dedicated to localizing global expertise to make a meaningful difference to our patients and life science customers,” said Stefan Oschmann, Chairman of the Executive Board and CEO of Merck. “Combining the strengths of our two business sectors Healthcare and Life Science, the Nantong site is a pioneering initiative to foster a comprehensive value chain that will create better access to health, enabling Merck to support China’s evolving developmental and healthcare priorities.”

“With our new state-of-the-art pharmaceutical production, Merck is transforming from an import-based company to a full-fledged local industry player in China,” said Marc Horn, Managing Director of the biopharma business of Merck in China. “By dedicating the largest manufacturing plant outside of Europe to the production of pharmaceuticals to address widespread healthcare needs in China, Merck is connected with China more than ever. This is in line with our Healthcare vision for 2021 – transforming 25 million patients’ lives in China, for China. We are grateful for the valuable contributions from local authorities and partners who helped make the inauguration of this facility possible according to our planned schedule. When the plant is fully up and running, we will have created new jobs for more than 400 highly skilled employees.”

The Nantong pharmaceutical manufacturing site will focus on the production of Glucophage, Euthyrox and Concor, Merck’s leading brands for the treatment of the major chronic diseases diabetes, thyroid disorders and cardiovascular diseases. With the next investment of € 90 million announced today, the facility is designed to accommodate full production capacity of up to 10 billion tablets a year by 2021. The pharmaceutical manufacturing site currently employs 180 people and the workforce is expected to increase to more than 400 by 2021. The Nantong site is designed to comply with the highest international standards in terms of quality, environment, health and safety. The site has invested in standard-setting wastewater treatment and disposal aimed at minimizing the environmental footprint of its operation to the local communities.