Second Largest Private Investment in State History
Governor Laura Kelly and Merck Animal Health today jointly announced an $895 million capital expansion project at the company’s manufacturing facility in De Soto, Kansas. The second largest private investment in Kansas history – and the largest economic development project for Merck Animal Health – will create more than 200 new jobs.
The $860 million investment in its existing manufacturing facility and $35 million in its research and development laboratories demonstrates Merck’s commitment to the U.S. market, where the company has significantly invested to deliver innovative health solutions that advance the prevention and treatment of diseases in people and animals.
“This extraordinary investment by Merck Animal Health underscores my administration’s commitment to securing a strong economic future for our state and ensuring prosperity for generations to come,” Governor Laura Kelly said. “Public-private partnerships that lead to major global projects, such as those with Merck, Fiserv and Panasonic – just to name a few recent successes – are occurring because people believe in Kansas. They believe in who we are, what we are doing, and the direction we have taken.”
The 200,000-square-foot manufacturing facility project will expand filling and freeze dryer capacity for large molecule vaccines and biologic products for Merck Animal Health. As a Center of Excellence, it will play a pivotal role in the manufacturing of animal health products and will complement the company’s extensive U.S. and international network of animal health product manufacturing plants.
Site preparation and facility design will start immediately, creating 2,500 construction jobs. Commercial manufacturing is expected to begin in 2030.
“Our De Soto manufacturing facility is strategically located in the heart of the Animal Health Corridor. This region is renowned for its concentration of animal health companies, fostering an unparalleled ecosystem for innovation, collaboration and industry leadership,” Merck Animal Health President Richard DeLuca said. “This investment in our site is designed to increase Merck Animal Health’s ability to meet the growing customer demand for its portfolio of animal biologics products and ensure the company remains at the forefront of innovation in the animal health sector. This initiative also reflects our dedication to advancing animal health and our on-going investment in the communities where we operate.”
Since the advent of the 2017 Tax Cuts and Jobs Act, Merck has allocated more than $12 billion to enhance domestic manufacturing and research capabilities, with additional planned investments of more than $9 billion over the next four years.
Merck Animal Health’s significant investment in its research and development laboratories will enhance its research capabilities, focusing on advancing global drug discovery and development initiatives. The investment will continue to drive Merck Animal Health’s innovative research and development of novel parasiticides and therapeutics, reinforcing the company’s dedication to improving animal health and welfare worldwide.
“Merck’s massive expansion in De Soto further elevates Kansas’ long-established status as a global leader in animal health,” Lieutenant Governor and Secretary of Commerce David Toland said. “The opportunities and ripple effects of having almost $1 billion surge into the local economy will have far-reaching and long-lasting reverberations across the entire state. Historic investments such as these truly benefit all Kansans, both now and into the future.”
Contact:
Grace Hoge
Grace.Hoge@ks.gov
