Vetter Expands German Operations with New Pharma Plant

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Pharmaceutical service provider Vetter Pharma-Fertigung GmbH & Co KG has confirmed plans to invest 480 million euro (US$574 million) to build a state-of-the-art production facility in the Saarland region of southwest Germany.

Germany's Vetter Pharma-Fertigung GmbH & Co KG is expanding its home-country operations with plans to spend 480 million euro (US$574 million) to build a state-of-the-art production facility in Saarlouis, in southwest Germany. 

A leading Contract Development and Manufacturing Organization (CDMO) for the production of injectable drugs, Vetter has submitted a planning application for the plant, which will be located on a 95-acre site next to the former Ford Manufacturing Plant. Construction is expected to begin in the second quarter of 2026 with operations scheduled to kick off in 2031. The 75-year-old privately owned company said that the initial investment will cover the first phase of construction and that the plant, when fully operational, will employ up to 2,000 people. Vetter specializes in aseptic filling for its customers' drug products in syringes, cartridges and vials. It also offers packaging solutions and injection device assembly options. The site in Saarlouis was chosen in 2024 for having "significant regional advantages," the company stated, as most of its German operations are currently located in Ravensburg. Industrial Info is tracking seven Vetter projects in Germany, most in Ravensburg, with a combined investment of more than US$1 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports. 

European Support

The project has benefitted from 47 million euro (US$56 million) of state aid from the European Commission (EC), which said that it supports the European Union's (EU's) priorities of job creation and regional development, as well as ensuring affordable medicines in line with the Pharmaceutical Strategy for Europe. The project's location was a key reason for the funding support as the regional aid aims to support economic development in disadvantaged areas of Europe. The EC stated: "It would contribute to job creation in, as well as the economic development and the competitiveness of a disadvantaged area. In particular, the measure will create at least 1,200 direct jobs, and further indirect jobs. The aid has an incentive effect, as the beneficiary (Vetter) would have carried out the project in a different, non-assisted region without the public support."

Government Reaction

Saarland Minister of Economic Affairs Jürgen Barke commented: "The planned investment will diversify our economy and create new jobs in a market with a future. This strengthens Saarland in the structural change and contributes to the sustainable development of our innovation and industrial landscape." "With the construction of our new production facility in Germany, we continue on our path to sustainable growth, said Udo J. Vetter, chairman of the advisory board. "Long-term success derives from striking the right balance between stability and expansion. With our investments in the state of Saarland, only a five hour drive away from our headquarters in Ravensburg, we are strengthening our commitment to Germany's economic landscape while reaffirming our engagement as a strategic partner to the global pharmaceutical market."

U.S. Investment

Vetter's plans for Saarlouis were announced in June 2024 at the same time as the company revealed its intention to move and expand its fill-finish site in the Chicago suburb of Skokie to nearby Des Plaines. Construction on the US$285 million project started last summer and commissioning is expected in 2029. The aseptic manufacturing facility will provide additional capacity for small-batch production of novel active ingredients and includes space for warehouses, laboratories and administrative offices on the 860,000-square-foot site. Vetter also has manufacturing facilities in Langanargen, Germany, and Rankweil, Austria.

Key Takeaways 

• CDMO Vetter investing 480 million euro (US$574 million) to expand its German pharma base.
• European Commission (EC) invested 47 million euro (US$56 million) in the project.
• Vetter also expanding its U.S. operations in Illinois.

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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 250,000 current and future projects worth $30.2 Trillion (USD).