Eli Lilly and Company plans to invest $1 billion to build a new pharmaceutical manufacturing facility in Concord, North Carolina. The project is expected to create nearly 600 new jobs in Cabarrus County.
The new facility will manufacture parenteral (or injectable) products and devices. The site, in conjunction with the Lilly facility announced in 2020 in Research Triangle Park, will help the company strengthen its connections with the state’s universities and workforce development network, as well as gain access to a strong transportation network.
"Lilly is entering an exciting period of growth and we are committed to delivering innovative medicines to patients around the world,” said Edgardo Hernandez, senior vice president and president, Lilly Manufacturing Operations. "Expanding our manufacturing footprint in North Carolina enables us to continue to produce today’s medicines while providing additional capacity to manufacture the medicines of tomorrow. We are pleased to again partner with North Carolina to bring jobs to American workers and provide more medicines that patients need to address health challenges.”
The investment will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee.
Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by $5.7 billion. Using a formula that takes into account the new tax revenues generated by the 589 new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $12,126,750, spread over 12 years. The company’s JDIG agreement lists its investment target as $939 million.
State payments only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.
"Lilly’s choice brings more good jobs to North Carolina from one of our most important industries,” said Governor Roy Cooper. “North Carolina has become a premier hub for the world, thanks to our exceptional workforce and commitment to education.”
Because Lilly chose a site in Cabarrus County, classified by the state’s economic tier system as Tier 3, the company’s JDIG agreement also calls for moving more than $4 million into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. Even when new jobs are created in a Tier 3 county such as Cabarrus, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state.
“North Carolina’s workforce continues to deliver a competitive edge to companies like Lilly, and we aim to keep it that way,” said North Carolina Commerce Secretary Machelle Baker Sanders. “The state’s strategic economic development plan is called the First in Talent plan for a reason, and that’s because North Carolina understands the importance of investing in our people and the educational systems that create opportunities for everyone.”
Lilly currently has seven manufacturing sites located in the United States in North Carolina, Indiana, New Jersey and Puerto Rico.