FRANKFURT, July 1 (Reuters) - French drugmaker Sanofi is

nearing a decision to invest between 1.3 billion euros and 1.5

billion euros ($1.4-$1.6 billion) at a major production site in

Frankfurt, Germany, where it makes insulin brand Lantus,

newspaper Handelsblatt reported on Monday.

The paper cited German government sources as saying Sanofi

changed course after initial considerations to transfer Lantus

production to France and the company is now close to committing

to an upgrade of the German site in Frankfurt's Hoechst

district.

A government spokesperson said Chancellor Olaf Scholz was

"very much looking forward" to further development but it was

for the company to provide an update.

Sanofi said it would not comment on specific investment

projects.

Among recent wins by Germany's ruling coalition to attract

healthcare investments, Daiichi Sankyo ( DSKYF ) said in February

it would spend about 1 billion euros to boost its work on

precision cancer drugs near Munich.

U.S. drugmaker Eli Lilly ( LLY ) in November last year

pledged to invest 2.3 billion euros to make obesity and diabetes

drugs in Germany.

($1 = 0.9299 euros)