- Sanofi invests €1.3 billion in Frankfurt
Sanofi's Billion-Euro Investment Plans in Frankfurt are Official
Sanofi, the French pharmaceutical giant, has officially announced its billion-euro investment plans in Frankfurt. The company is set to invest around 1.3 billion euros by 2029 to build a state-of-the-art insulin production facility at its site in the Frankfurt district of Höchst. The IG BCE union welcomes this decision as a crucial step in combating drug shortages in Germany.
The new high-tech insulin plant, which is expected to employ several hundred skilled workers by 2029, will replace an existing production facility. It will span approximately 36,000 square meters - roughly the size of five football fields - and 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.
A Boost for Frankfurt's Longstanding Insulin Production
"With this project, we reaffirm our commitment to diabetes patients worldwide and leverage the longstanding expertise of our Frankfurt BioCampus and 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 factories, employing around 6,600 people. It is the production hub for Lantus, the company's iconic diabetes medication, which generated billions in annual revenue. Sanofi, headquartered in Paris, employs over 86,000 people worldwide. Recent discussions had suggested a potential relocation of insulin production to France, but these plans have now been abandoned.
Hesse's Minister President Boris Rhein (CDU) and Economics Minister Kaweh Mansoori (SPD) welcomed Sanofi's decision, describing it as "a strong signal for our pharmaceutical site and another milestone for our drug sovereignty and export strength in Germany."
Combating Drug Shortages
Michael Vassiliadis, chairman of the IG BCE pharmaceutical union, stated that Sanofi's investment strengthens the pharmaceutical industry in Germany and elevates the over 100-year tradition of insulin production in Frankfurt Höchst to a new level. Given the "still sometimes dramatic supply bottlenecks and dependencies on other countries in drug production," this decision is necessary to ensure a stable insulin supply.
Sanofi's investment in Frankfurt also sends a positive signal amidst debates about Germany's waning competitiveness. In recent months, several international pharmaceutical companies have pledged significant investments in Germany: US-based Eli Lilly is investing 2.3 billion euros in a production facility in Alzey, Rhineland-Palatinate. Daiichi-Sankyo from Japan and Swiss pharmaceutical giant Roche have also announced billion-euro investments in Germany.
The German federal government is providing support for Sanofi's investment plans, which is crucial as it facilitates the construction of a new insulin production facility in Frankfurt. With the help of the federal government, Sanofi aims to strengthen its position in the pharmaceutical industry and ensure a stable insulin supply in Germany.
