Eli Lilly to build $6 billion Alabama plant as part of US manufacturing push

Dec 9 (Reuters) - Eli Lilly (LLY) said on Tuesday it will invest more than $6 billion in a new active drug ingredient manufacturing facility in Huntsville, Alabama, to expand U.S. production and bolster medicine supply chains.

The site, the third new U.S. facility announced by Lilly, will make small-molecule synthetic and peptide medicines, including orforglipron, its first oral GLP-1 weight-loss drug anticipated to receive U.S. approval early next year.

Global pharmaceutical companies have been increasing U.S. investments after President Donald Trump urged the industry to make more medicines domestically rather than importing active ingredients or finished medicines.

Earlier this year, Lilly outlined plans to spend at least $27 billion on four new U.S. manufacturing sites to counter potential drug import duties. Lilly said another location will be announced in the coming weeks.

The company said the construction is slated to begin in 2026, creating about 3,000 construction jobs, with completion targeted for 2032. Lilly also plans 450 roles for engineers, scientists, operations personnel and lab technicians in the area.

CEO David Ricks said the investment advances the onshoring of active pharmaceutical ingredient production to strengthen supply resilience.

The company estimates every dollar invested could generate up to four dollars in local economic activity.

The site was chosen from more than 300 applications, aided by proximity to the HudsonAlpha Institute for Biotechnology, an established bioscience campus supporting workforce training and research, Lilly said.

Alabama Governor Kay Ivey called the project "the largest initial investment in our state's history."

Lilly said the plant will use machine learning, AI and digitally integrated monitoring systems, with automation embedded across operations.

The company also aims to work toward carbon neutrality at the site, said Edgardo Hernandez, Lilly's manufacturing operations head. (Reporting by Puyaan Singh in Bengaluru; Editing by Vijay Kishore)