New production for insulin - Report: Sanofi plans to invest billions in Frankfurt
The French pharmaceutical company Sanofi is reportedly planning to invest up to 1.5 billion Euros in its insulin production site in Frankfurt. The company intends to build a new production facility at its location in the district of Höchst and could take between 1.3 and 1.5 billion Euros for it, according to "Handelsblatt," citing sources close to the German government. Sanofi already operates a production site for insulin in Höchst, which is expected to make way for a newer technology in the new facility. A final decision has not been made, but preparations for construction in Höchst are already underway, it was reported.
Chancellor Olaf Scholz (SPD) is reportedly pleased with the investment. "The Federal Chancellor looks at this development with a very positive outlook," said government spokesperson Steffen Hebestreit in Berlin. He was not surprised by the news.
Hessian State Government Gets Involved
According to the Hessian State Government, Minister President Boris Rhein (CDU) and Economics Minister Kaweh Mansoori (SPD) have been in talks with Sanofi for months about a possible settlement. "A financial participation of the state is fundamentally thinkable to secure and create jobs, to leverage investments, and to set incentives for innovations," said a government spokesperson.
Amidst the debate about the struggling economic location and the often criticized shortage of important medicines in Germany, a billion-dollar investment from Sanofi in Frankfurt would be a positive signal for Germany. Recently, several foreign pharmaceutical companies have announced multi-billion Euro investments in Germany: The US pharmaceutical company Eli Lilly is investing 2.3 billion Euros in the construction of a production site in the Rhineland-Palatinate Alzey. Billion-dollar investments have also been decided by Daiichi-Sankyo from Japan, the Swiss pharmaceutical company Roche, and the Darmstadt DAX-listed Merck.
Good news for struggling economic location Germany
Sanofi declined to confirm the "Handelsblatt" report when contacted. The company stated that it "continuously examines investment opportunities" to improve the resilience of its supply chains worldwide and ensure the supply of patients with essential medicines and vaccines, it was reported only.
The Frankfurt site is one of Sanofi's largest sites with around 6,600 employees. Worldwide, more than 86,000 people work for the company. It was recently reported that Sanofi was still considering moving its insulin production from Frankfurt to France, according to "Handelsblatt." These plans appear to have been abandoned.
- This investment from Sanofi aligns with the SPD's economic policy in Hesse.
- The Federal Government in Berlin is also supportive of the pharmaceutical company's plans to expand in Frankfurt am Main.
- The proposed investment could potentially save the insulin production site in Höchst from relocation to France.
- Hoechst, a district in Frankfurt, could see significant economic growth due to Sanofi's potential investment.
- The German pharmaceutical industry could benefit significantly from such large-scale investments by companies like Sanofi.
- The SPD in power in Hesse has been actively engaging in talks with multiple pharmaceutical companies, including Sanofi, to secure investments.
- Olaf Scholz, the SPD's chancellor, has expressed positivity towards Sanofi's potential investment, seeing it as a boost for Germany's pharmaceutical sector.
