Eli Lilly and Company will reduce its planned investment in Germany by half, cutting it from €2.3 billion ($2.67 billion), CEO Dave Ricks told the Handelsblatt business daily.
More than €1 billion has already been invested in a production facility located in Alzey, in the western German state of Rhineland-Palatinate. The site is focused on manufacturing weight-loss injection treatments.
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The high-tech facility is still planned to start operations in 2027, but it will now run at reduced capacity and create only about half of the originally planned 1,000 jobs.
Eli Lilly and Company CEO Dave Ricks said that the investment amount withdrawn from Germany will be redirected to either Pennsylvania in the United States or potentially a completely new production site.
“Europe isn’t completely off the table, but the U.S. makes the most sense,” he said.
The decision follows proposed legislation in Germany to cap rapidly growing costs in the statutory health insurance system.
