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Released August 28, 2024 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Danish pharma major Novo Nordisk A/S (NYSE:NVO) (Bagsværd, Denmark) has announced plans to spend 1.5 billion Danish kroner (US$220 million) to build a new raw materials plant in Denmark to help meet significantly higher demand for the production of medicines to fight chronic diseases.
The company's division Novo Nordisk Pharmatech will build a new 8,000-square-meter factory at Ådalen 16 in Køge, comprising production, storage, offices and a laboratory. The site forms part of a 47,000-square-meter parcel of land the company purchased last year with the aim of expanding production. Commissioning is expected in 2027, and the plant will create around 50 jobs. It will produce silica gel, which Novo Nordisk uses in the production of a number of its medicines, including insulin and GLP-1 therapies, such as its popular weight-loss treatment Wegovy and diabetes drug Ozempic. As the first mover in the obesity drug race, the company sped to the top of Europe's most valuable listed companies last year with a value approaching US$500 billion.
"This is the largest investment in Novo Nordisk Pharmatech's 75-year history," said Ulla Grove Krogsgaard Thomsen, chief executive officer of Novo Nordisk Pharmatech A/S. "We are in a period of growth. In accordance with our growth strategy, we are expanding our production to ensure an even more robust and reliable delivery of our products. The location in Køge is ideal, as we can draw on the extensive know-how we have at our current factory -- and furthermore, the infrastructure is optimal, with Køge Nord station so close to our new site."
Based on its experiences of the current production operations at Københavnsvej, the company aims to reuse important elements for production, including regenerating raw materials, that will cut its carbon dioxide footprint by around 60%. Solar panels will be installed in the parking lot, and the building will also be constructed using sustainable materials.
To keep up with the massive demand for Wegovy and Ozempic, the company has ramped up its manufacturing investment in Denmark and France. It is spending more than US$2.2 billion to boost production at its site in Chartres, France, to add aseptic production and finished production processes, where it will also extend the site's current laboratory for quality control. It will add 500 more jobs to the current workforce of 2,000. Construction has begun and will be completed between 2026 and 2028, the company said. Industrial Info is also tracking a further US$3.5 billion in projects to greatly expand the company's manufacturing capacity at Kalundborg in Denmark.
In July, the company pulled the plug on plans for a US$2 billion expansion of its Grange Castle campus in Dublin, Ireland. No reason was forthcoming for withdrawing its planning application for the proposed 1.6 million square feet of new facilities that would have employed up to 1,100 people. For additional information, see July 1, 2024, article - Novo Nordisk Drops $2 Billion Irish Project.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The company's division Novo Nordisk Pharmatech will build a new 8,000-square-meter factory at Ådalen 16 in Køge, comprising production, storage, offices and a laboratory. The site forms part of a 47,000-square-meter parcel of land the company purchased last year with the aim of expanding production. Commissioning is expected in 2027, and the plant will create around 50 jobs. It will produce silica gel, which Novo Nordisk uses in the production of a number of its medicines, including insulin and GLP-1 therapies, such as its popular weight-loss treatment Wegovy and diabetes drug Ozempic. As the first mover in the obesity drug race, the company sped to the top of Europe's most valuable listed companies last year with a value approaching US$500 billion.
"This is the largest investment in Novo Nordisk Pharmatech's 75-year history," said Ulla Grove Krogsgaard Thomsen, chief executive officer of Novo Nordisk Pharmatech A/S. "We are in a period of growth. In accordance with our growth strategy, we are expanding our production to ensure an even more robust and reliable delivery of our products. The location in Køge is ideal, as we can draw on the extensive know-how we have at our current factory -- and furthermore, the infrastructure is optimal, with Køge Nord station so close to our new site."
Based on its experiences of the current production operations at Københavnsvej, the company aims to reuse important elements for production, including regenerating raw materials, that will cut its carbon dioxide footprint by around 60%. Solar panels will be installed in the parking lot, and the building will also be constructed using sustainable materials.
To keep up with the massive demand for Wegovy and Ozempic, the company has ramped up its manufacturing investment in Denmark and France. It is spending more than US$2.2 billion to boost production at its site in Chartres, France, to add aseptic production and finished production processes, where it will also extend the site's current laboratory for quality control. It will add 500 more jobs to the current workforce of 2,000. Construction has begun and will be completed between 2026 and 2028, the company said. Industrial Info is also tracking a further US$3.5 billion in projects to greatly expand the company's manufacturing capacity at Kalundborg in Denmark.
In July, the company pulled the plug on plans for a US$2 billion expansion of its Grange Castle campus in Dublin, Ireland. No reason was forthcoming for withdrawing its planning application for the proposed 1.6 million square feet of new facilities that would have employed up to 1,100 people. For additional information, see July 1, 2024, article - Novo Nordisk Drops $2 Billion Irish Project.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
