Sept 16 (Reuters) - Eli Lilly ( LLY ) said on Tuesday it

will invest $5 billion to build a manufacturing facility in

Virginia, the first of four new U.S. plants the drugmaker has

planned as it moves to expand domestic production and hedge

against potential tariffs.

Global pharmaceutical companies have been increasing U.S.

investment to bolster manufacturing capacity after President

Donald Trump urged the industry to make more medicines

domestically rather than importing active ingredients or

finished medicines.

Trump has said he

would start with small pharma tariffs

and could raise them to as high as 250% to boost U.S.

production.

Earlier this year, Lilly outlined plans to spend at least

$27 billion on four new U.S. manufacturing sites to counter

potential drug import duties. Since 2020, the company has

committed $50 billion in capital expansion.

The new facility in Goochland County, Virginia, will produce

active pharmaceutical ingredients for cancer, autoimmune and

other advanced therapies.

It will also expand Lilly's capacity to make

antibody-drug conjugates, a targeted class of cancer treatments.

The plant is expected to be completed within five years.

"By expanding our domestic capacity, we are building a

secure, resilient supply chain," said CEO David Ricks.

Lilly said the Virginia site will create more than 650

jobs for skilled workers, including engineers and scientists and

1,800 construction jobs.

The company plans to announce the locations of the three

remaining U.S. plants later this year and expects to begin

making medicines at all four facilities within five years.