ALLENTOWN, PA — Gov. Josh Shapiro and state economic development leaders on Friday announced what they called the largest life sciences investment in Pennsylvania history: a $3.5 billion commitment by pharmaceutical giant Eli Lilly and Company to build a new manufacturing facility in Lehigh County that is expected to create at least 850 jobs over five years.
The project, backed by $100 million in state support, will place Lilly’s first manufacturing footprint in Pennsylvania on a site the company is purchasing in Fogelsville, according to the announcement. The facility is intended to expand U.S. capacity for next-generation weight-loss medicines as demand rises.
“When we announced our Economic Development Strategy here in the Lehigh Valley two years ago, we set out to win historic, life-changing deals like the one we’re announcing with Lilly today,” Shapiro said. “Before I took office, Pennsylvania wasn’t even in the conversation for major investments like this, but thanks to our work to cut red tape, invest in site development, and expand our workforce, our Commonwealth is now competing – and winning – on a national scale. Lilly’s commitment to the Lehigh Valley and to Pennsylvania will bring billions of dollars of investment and hundreds of good-paying jobs, solidifying our position as a leader in the growing life sciences industry.”
DCED Secretary Rick Siger said the deal is expected to deliver new jobs and strengthen the state’s standing in a sector that has been rapidly expanding across the region.
“Lilly’s investment is an important win for the Lehigh Valley and the entire Commonwealth, creating at least 850 new jobs and further solidifying our position as a leader in economic development and life science innovation,” Siger said. “This announcement also further proves that our Economic Development Strategy is working to attract historic, new investments to Pennsylvania. We will keep competing for major projects like this one that will continue to strengthen our life sciences industry, create good-paying jobs, and fuel economic growth across the Commonwealth.”
Lilly chair and CEO David A. Ricks said the company’s decision reflects a push to make more medicines domestically while partnering locally on workforce needs.
“Our mission starts with patients and delivering the medicines they need. To meet increasing demand, we’re expanding our U.S. manufacturing network, with Lehigh Valley adding capacity for next-generation weight-loss medicines. We’re creating high-quality jobs and collaborating across the region—with suppliers, educators, and workforce-development partners—to make critical medicines in the U.S.,” Ricks said. “That’s our commitment—to patients, to our new Pennsylvania home and to our country.”
State officials said Lilly received a funding proposal that includes up to $50 million in tax credits through the PA Edge Tax Credit Program, a $25 million grant through the PA SITES program, and a $25 million Pennsylvania First grant. The announcement also said Pennsylvania has committed a Redevelopment Assistance Capital Program award of up to $5 million to a local community college and/or technical school to help create a workforce training pipeline for the company in the Lehigh Valley.
The project is also getting assistance through Pennsylvania’s Office of Transformation and Opportunity via the PA Permit Fast Track Program, which the administration said is designed to coordinate and accelerate permitting for major economic development and infrastructure projects.
Local economic development leaders credited an extended recruitment effort and state involvement in landing the plant.
“The Lehigh Valley is honored to welcome Lilly to the region,” said Don Cunningham, president and CEO of the Lehigh Valley Economic Development Corporation. “It took numerous key partners working behind the scenes in a multi-year process to attract Lilly and this multi-billion-dollar investment, but none more critical than Governor Shapiro and his excellent team. We’re grateful for his leadership and partnership and the confidence and investment of Lilly.”
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