- Sanofi invests €1.3 billion in Frankfurt
Sanofi's Billion-Euro Investment Plans in Frankfurt are Official
Sanofi's billion-euro investment plans in Frankfurt are now official. The French pharmaceutical giant is set to invest around 1.3 billion euros in the construction of a modern insulin production facility at its site in the Frankfurt district of Höchst by 2029, as announced by the company.
The new high-tech insulin plant, with an area of approximately 36,000 square meters - roughly five football fields - is expected to employ several hundred skilled workers by 2029, replacing an existing production facility. The new plant will meet the highest quality and automation standards. Sanofi's investment will be facilitated by the support of the German federal government, the Hessian state government, and the city of Frankfurt, pending approval from the European Commission under the EU state aid procedure.
Traditional Insulin Production in Frankfurt
"With this project, we reaffirm our commitment to diabetes patients worldwide and leverage the long-standing expertise at our Frankfurt BioCampus with its highly qualified employees," said Brendan O’Callaghan, Chairman of the Supervisory Board of Sanofi in Germany.
Sanofi's plans were first revealed in early July, with official confirmation still pending. The Frankfurt-Höchst site is one of Sanofi's largest plants, employing around 6,600 people. It is the production site for the traditional diabetes medication Lantus, which generated billions in annual sales for Sanofi.
Next Billion-Euro Investment by a Pharmaceutical Company in Germany
With over 86,000 employees worldwide, Sanofi had previously considered relocating its insulin production to France. These plans have now been shelved. Both the German federal government and the Hessian state government have actively supported the project's establishment.
Amidst debates about Germany's waning competitiveness and the often-criticized shortage of essential medicines, Sanofi's investment in Frankfurt sends a positive signal. Recently, several international pharmaceutical companies have pledged significant investments in Germany: The US pharmaceutical company Eli Lilly is investing 2.3 billion euros in the construction of a production facility in Rhineland-Palatinate's Alzey. Daiichi-Sankyo from Japan and the Swiss pharmaceutical giant Roche have also announced billion-euro investments in Germany.
The European Commission will need to approve Sanofi's investment plans, as they require support from various German and city governments under the EU state aid procedure.
Brendan O'Callaghan, the Chairman of Sanofi's Supervisory Board in Germany, stated that the new insulin plant reaffirms their commitment to diabetes patients worldwide and leverages the expertise at the Frankfurt BioCampus.
