Merck Announces Investment of Approximately € 100 Million to Accelerate Single-Use Manufacturing in China

News Release

• Merck’s First Asia Pacific Mobius^® Single-Use Manufacturing Center in Wuxi, China
• Investment Supports Biotech Innovation in China
• Partnership with Administrative Management Committee of Wuxi National High-Tech Industrial Development Zone to jointly cultivate and enhance the life science ecosystem in Wuxi

Burlington, MA, April 28, 2022 – Merck, the U.S. and Canada life science business of Merck KGaA, Darmstadt, Germany, a leading science and technology company, today announced the Life Science business sector’s signing of an agreement with the Administrative Management Committee of Wuxi National High-Tech Industrial Development Zone to significantly expand the company’s first Asia Pacific Mobius^® Single-Use manufacturing center in China.

“For more than two decades, with the support of the Chinese government and the Wuxi authority, we have served customers across academia, biopharma and diagnostics,” said Matthias Heinzel, Member of the Executive Board of Merck, KGaA, Darmstadt, Germany and CEO Life Science.

“Today’s agreement underscores our continued commitment to customers in China and the fast-growing Asia-Pacific region. The expansion of local manufacturing capabilities in Wuxi for Mobius^® Single-Use assemblies is key to supporting the ongoing development and manufacture of Covid-19 vaccines and therapeutics and other lifesaving and life-enhancing treatments. Together with our partners, we make a positive impact on life and health with science.”

The Life Science business sector plans to invest approximately € 100 million (RMB 700 million or USD 110 million) over six years by expanding the existing Wuxi production site to significantly increase biopharma single-use assemblies and custom design capabilities. With this expansion, the company will extend its geographic footprint and strengthen its supply chain in China and the Asia-Pacific region. This investment is expected to create about 1,000 new positions and be operational by 2024. It is in line with the company’s plan to increase its total investments between 2021 and 2025 by more than 50% compared with the period from 2016 to 2020. More than 70% of this will be invested in the “Big 3,” which includes the Process Solutions business unit and the newly formed Life Science Services business unit of the Life Science business sector.

“Over the next five years, we expect strong growth in the bioprocessing market, with Asia growing in the mid-teens and China above 20% per annum on average. This is fueled by increasing demand for single-use products in advanced biopharmaceutical manufacturing such as monoclonal antibodies (mAbs), vaccines, and new therapies,” said Marc Jaffre, Managing Director at the company’s Life Science business sector in China. “This strategic investment will support biotech innovation in China.”

"Merck KGaA Darmstadt, Germany, once again, has chosen Wuxi as the site for one of its most important investment projects. Today’s announcement reflects the strength of our long-term partnership, the company’s confidence in the city’s development prospects, and demonstrates a win-win choice for mutual benefit,” said Zhao Jianjun, Mayor of Wuxi, China.

Since 2020, the Life Science business sector has announced expansion projects in Darmstadt, Germany; Cork, Ireland; Buchs, Switzerland; Molsheim, France; Carlsbad, California, USA; Madison, Wisconsin, USA; Jaffrey, New Hampshire, USA; and Danvers, Massachusetts, USA. These expansions are part of an ambitious, multi-year program to increase the industrial capacity and capabilities of the Life Science business sector to support the growing global demand for lifesaving medications and to make significant contributions to public health.

Over the next five years, the company will implement investment programs worldwide. The target countries include Germany, China, France, Switzerland, Ireland, and the United States. All expansion projects include clear targets for energy efficiency, water consumption, and waste treatment to support the company in meeting its goal to be carbon-neutral by 2040, in line with its sustainability strategy.