The 5-year investment will modernize production equipment, enlarge automation and reinforce U.S.-based contract drug substance manufacturing at the company’s Indiana facility.
On July 7, Germany-based specialty chemicals producers Evonik declared plans to invest $100 million over the next 5-years to modernize production operations at its Tippecanoe Labs site in Lafayette, Indiana, reinforcing its U.S.-based contract development and production competencies for active pharmaceutical ingredients (APIs).
As per the company, the investment will improve massive reactors and other critical production equipment to advance reliability, boom automation, and enhance ergonomics and operational efficiency. The venture is aimed to assist meet developing demand for U.S.-based contract production services for an increasingly complex drug substances.
Tippecanoe Labs is one of the world’s largest API production facilities and the industry’s largest high-efficiency API operation, stated the company. The site, which Evonik obtained from Eli Lilly in 2010, produces pharmaceutical intermediates, APIs and excipients and employs more than 650 people.
Evonik stated the modernization supports its strategy to better balance production assets across North America, Europe and Asia at the same time as expanding North American capacity for its drug substance CDMO business. The company also cited that developing geopolitical uncertainty and growing molecular complexity are driving demand for regional production capacity and more advanced manufacturing technologies.
The investment is anticipated to support maintain the site’s capabilities for production complex small-molecule APIs utilized in therapies for indications including cancers, metabolic diseases and cardiovascular disorders. As per the company, the venture also will energy efficiency even as helping secure jobs at the Indiana facility.
Last month, Evonik declared a broader restructuring program that includes about 3,200 additional job reductions through 2029 as part of its ongoing Tailor Made efficiency initiative. At the same time, the company has persisted investing in strategic growth areas, together with biopharmaceutical production, biotechnology and innovation platforms, underscoring its approach of pairing cost reductions with aimed investments in higher-growth businesses.
