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Eli Lilly Plans Major Biomanufacturing Plant in Northeast Houston

Eli Lilly Biomanufacturing Plant Concept

News Summary

Eli Lilly & Co. is in talks to establish a biomanufacturing plant in Northeast Houston, potentially investing $5.9 billion. The facility aims to create around 600 permanent jobs and over 2,000 construction jobs, significantly impacting the local economy. Set to manufacture active pharmaceutical ingredients, this project represents a substantial boost for the area and is backed by local developers and organizations focusing on life sciences.

Texas – Eli Lilly & Co., a leading global pharmaceutical company, is contemplating the establishment of a biomanufacturing facility in Northeast Houston, marking a significant investment of approximately $5.9 billion. The proposed plant would sit on a 236-acre parcel within Generation Park and has the potential to add about 600 permanent jobs to the local economy, along with more than 2,000 construction positions.

The biomanufacturing plant is strategically located near Beltway 8, roughly 10 miles east of George Bush Intercontinental Airport. Its primary function would be to manufacture active pharmaceutical ingredients for various essential medications. In submitting a tax incentive application on May 16, which falls under the Texas Jobs, Energy, Technology and Innovation (JETI) program, Eli Lilly aims to bolster its expansion efforts within the U.S. pharmaceutical landscape.

According to projections, the investment is expected to inject around $2.5 billion into the local economy over the next decade, reflecting a robust potential for regional economic growth. Construction of the facility is slated to commence in 2025, with an anticipated completion timeline concluding in 2030. The project encompasses plans for multiple production buildings, a tank farm, wastewater treatment, and specialized equipment to ensure effective production processes.

During the construction phase, the average number of workers is estimated to be about 2,107, generating substantial employment opportunities. Upon completion, the facility will require about 604 full-time staff, including roles for production technicians, engineers, and administrative personnel. Beyond these direct job opportunities, the project is expected to create approximately 1,188 indirect and induced jobs as the facility operates and thrives within the community.

Eli Lilly’s intent to expand its manufacturing infrastructure across the United States is notable, with a total investment in the sector reaching $50 billion since 2020. This includes a recent announcement in February, where the company unveiled intentions to allocate an additional $27 billion towards establishing new production facilities nationwide, including four dedicated plants for active pharmaceutical ingredients and injectable drugs.

The nearby Generation Park has been a focus for life sciences and advanced manufacturing, thanks to the efforts of McCord Development, the park’s developer. The Greater Houston Partnership is also aligned with local development efforts, reinforcing Houston’s favorable conditions for life science investments, despite refraining from providing specific details on the Eli Lilly project.

It is important to note that the proposed Eli Lilly site is distinct from McCord Development’s BioHub Two project, which spans 45 acres and will concentrate on biomanufacturing and life sciences. In 2021, a different biomanufacturing proposal from Amgen, amounting to $550 million, considered Generation Park but ultimately decided against it. Concerns regarding the local workforce’s expertise in biomanufacturing may have influenced that decision. However, the upcoming opening of the Center for Biotechnology at San Jacinto College, scheduled for September, aims to enhance bioprocess training and bolster the available talent pool in this field.

Meanwhile, Eli Lilly is currently embroiled in a legal dispute with Empower Pharmacy, concerning allegations of selling unapproved versions of its medications. The resolution of this matter could have implications for the company as it moves forward with its ambitious plans for the Northeast Houston site.

The JETI program, under which Eli Lilly has applied for tax incentives, allows local school districts to cap taxable property values for maintenance and operations taxes. This could further bolster the financial viability of Eli Lilly’s planned investment in the biomanufacturing facility, ultimately benefiting the local economy and the broader pharmaceutical sector.