Feb 26 (Reuters) - Eli Lilly ( LLY ) plans to spend at
least $27 billion to build four new manufacturing plants in the
U.S., the drugmaker said at a Washington press conference on
Wednesday, as it grapples with the threat of drug import duties
from the Trump administration.
The new plants will be built over the next five years, and
are expected to create more than 3,000 jobs for skilled workers
like engineers and scientists as well as 10,000 construction
jobs, the company said.
Lilly said it will announce the locations of the sites later
this year.
The announcement comes less than a week after U.S. President
Donald Trump met with chief executives from major drugmakers,
including Lilly CEO David Ricks, to discuss industry concerns
such as tariffs on drug imports.
Trump, who campaigned on a promise to boost domestic
manufacturing, has been piling pressure on drugmakers since
taking office to move medicine production to the U.S. He
suggested last week that he could impose a 25% duty on
pharmaceutical and other imports.
Other sectors are also making manufacturing announcements.
Earlier this week, Apple said it would spend $500 billion in the
U.S. over the next four years, but analysts said some of that
included current commitments.
The U.S. and its major trading partners have agreed to
reciprocal tariff elimination for pharmaceutical products and
chemicals used in drug production for the past 30 years,
according to the U.S. Trade Representative's office.
Despite telling Republicans in a White House meeting earlier
this month that he was considering such an exemption, Reuters
reported, Trump has yet to rule them out.
Ricks said in a statement that Lilly's new investment plans
would help reinvigorate U.S. manufacturing, and that tax-cutting
legislation introduced in Trump's first term has been
foundational to the drugmaker's domestic manufacturing
investments.
Lilly, which has become the world's most valuable healthcare
company worth more than $855 billion, said it has already
committed $23 billion to boosting its U.S. manufacturing
footprint since 2020. Its Wednesday announcement brings that
total to more than $50 billion.
Three of Lilly's new plants will be used to manufacture
pharmaceutical raw ingredients, while the fourth will make
injectable medicines, the drugmaker said.