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Merck Readies $1 Billion Expansion at Facility in Elkton, Virginia

Merck & Co., Inc., a publicly held global healthcare company known as MSD outside the United States and Canada, plans to invest up to $1 billion in stages over the next three years to expand its manufacturing operation in Elkton, Virginia.

The company will add 120,000 square feet to its existing 1.1 million-square-foot operation in Elkton, Virginia to increase production of its Human Papillomavirus vaccines. Virginia successfully competed with other states for the project, which is anticipated to create approximately 100 new jobs in Rockingham County.

“We are proud of the employees and colleagues at Merck who are inventing for life to deliver our innovative medicines and vaccines to the world,” said Sanat Chattopadhyay, Executive Vice President and President, Merck Manufacturing Division. “We also are grateful to our neighbors in the community and Commonwealth. Our strong partnerships with local and state elected officials, educational institutions, and organizations throughout the Elkton community help us sustain our commitment to the area’s economic growth.”

“This record investment in Rockingham County is a symbol of Merck’s strong commitment to the Shenandoah Valley and will support further economic growth in the region,” said Governor Ralph Northam. “Merck has long been a valued employer and important corporate steward in Virginia that continues to play a vital role in advancing the 21st-century manufacturing sector in our Commonwealth. I want to commend all of the partners involved on this transformative project, including Blue Ridge Community College and James Madison University, their unprecedented collaboration will ensure we have pipeline of skilled talent in the Shenandoah Valley for decades to come.”

Virginia Economic Development Partnership worked with Rockingham County, the Shenandoah Valley Partnership, and the General Assembly’s Major Employment and Investment Project Approval Commission to secure the project for Virginia.

Subject to approval by the General Assembly, Merck will be eligible to receive an MEI custom performance grant of up to $7.5 million for storm water and infrastructure upgrades to support the expansion of the facility. In addition, Blue Ridge Community College and James Madison University are eligible to receive up to $2.5 million for the development of a custom workforce solution.

Additionally, Dominion Energy will provide support to enable the expansion, including substantial infrastructure upgrades. The company is also eligible to receive Sales and Use tax exemptions on manufacturing equipment, as well as a Major Business Facility Job Tax Credit for new, full-time jobs created.

“Merck’s incredible growth in Rockingham County exemplifies what a manufacturing company can accomplish in the region with access to the Shenandoah Valley’s high-quality education system and talented workforce,” said Secretary of Commerce and Trade Brian Ball. “We are proud of the efforts of James Madison University and Blue Ridge Community College to cultivate biotech engineering and computer science talent in the region, and are confident that the result will be continued prosperity for Merck and other major employers across the Commonwealth.”

According to company officials, as part of the expansion Blue Ridge Community College and James Madison University will collaborate to address Merck’s short- and long-term workforce needs through the development of a custom workforce solution. BRCC and JMU will establish a pipeline of biotechnology engineering and computer science talent that will allow the Shenandoah Valley to accommodate the future growth of Merck and other life science industries and manufacturers in the region.

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