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Gerresheimer Invests Up to $9.4m in US Production Facility

Gerresheimer, a leading provider of healthcare and beauty solutions and drug delivery systems for pharma, biotech and cosmetics, today announced investments to rapidly expand its manufacturing, supply and logistics capability for glass vials in the US.

The project will be supported by the Biomedical Advanced Research and Development Authority (BARDA), part of the Office of the Assistant Secretary for Preparedness and Response (ASPR) at the US Department of Health and Human Services (HHS) with contracting support from the Department of Defense (DOD). It will expand Gerresheimer’s capacity by new vial forming lines, including dimensional inspection, annealing, cosmetic inspection and packaging. BARDA has agreed to provide up to approximately $66m to Gerresheimer for this project. The investment is part of Gerresheimer’s global expansion plan and follows its formula G strategy process.

Under the agreement, Gerresheimer will increase its annual production capacity in Morganton, North Carolina, with interchangeable Type One vials (glass borosilicate and/or aluminosilicate) and Gx Elite Glass Vials capability. BARDA’s financing, with contracting support from the DOD’s Joint Program Executive Office for Chemical, Biological, Radiological and Nuclear Defense (JPEO-CBRND) and the Army Contracting Command (ACC), will strengthen the capabilities in the US to respond to current and future public health emergencies. The vials can be used in vaccination campaigns against infectious diseases such as Covid-19 and others. This expansion of the facility will further strengthen Gerresheimer’s leading market position in best-in-class elite vials.

“Gerresheimer is honoured to support the US Government in strengthening its pharmaceutical supply chain for current and future healthcare emergencies,” said Dietmar Siemssen, CEO of Gerresheimer. “The agreement confirms our role as a supplier of system critical products, such as pharmaceutical primary packaging solutions and drug delivery systems for the healthcare sector. This investment follows our strategy process formula G and accelerates our growth in this important market,” he added.

As part of the project, the existing facility in North Carolina will be enlarged by the installation of new vial forming lines and a new warehouse. As the investment will lead to an increase in the number of people employed, new offices will also be part of the expansion plan.

The company is committed to sourcing the vast majority of its raw materials from US domestic suppliers in order to enhance the levels of responsiveness, dependability, quality and domestic supply chain integration. Gerresheimer is furthermore incorporating sustainable design principles to implement energy efficiency measures, comply with storm water management requirements and reduce waste for the upgrades and expansion.