Design and Construction Report staff writer
Global pharmaceutical company Eli Lilly and Co. will invest $3.5 billion to build a new, state-of-the-art manufacturing facility in Lehigh County, a project expected to create at least 850 jobs over the next five years, Pennsylvania officials announced Jan. 30.
The project, the largest life sciences investment in Pennsylvania history, will be supported by up to $100 million in state incentives and marks Lilly’s first manufacturing operation in the Commonwealth.
Lilly is purchasing a site in Fogelsville, in the Lehigh Valley, for the new facility, which will expand the company’s U.S. manufacturing capacity for next-generation pharmaceutical products, including weight-loss medications.
Under the proposed incentive package, Lilly is eligible for up to $50 million in tax credits through the PA Edge Tax Credit Program, a $25 million grant through the PA SITES (Pennsylvania Strategic Investments to Enhance Sites) program, and a $25 million Pennsylvania First grant. The state has also committed up to $5 million through the Redevelopment Assistance Capital Program to support workforce training at a local community college or technical school.
State officials said the training funding is intended to create a long-term talent pipeline for the facility and support skilled manufacturing jobs in the region.
The project will also receive support through Pennsylvania’s PA Permit Fast Track Program, administered by the Office of Transformation and Opportunity, which is designed to accelerate permitting timelines for major economic development and infrastructure projects.
Lilly operates manufacturing and distribution facilities across the U.S., including Puerto Rico, as well as in Europe and Asia, and sells products in about 95 countries. Founded in 1876, the company develops and manufactures prescription medicines across therapeutic areas including cardiometabolic health, oncology, immunology and neuroscience.
Company officials said the Lehigh Valley site reflects a broader strategy to expand domestic manufacturing capacity.
The investment adds to a growing list of life sciences expansions in Pennsylvania, particularly in the Lehigh Valley, which has attracted pharmaceutical, biotechnology and advanced manufacturing projects in recent years.
State officials said Pennsylvania competed against multiple states for the project. Since taking office, the Shapiro administration says it has secured more than $39 billion in private-sector investment statewide, creating more than 21,500 jobs.
Local economic development leaders called the project a major win for the region, citing its scale, long-term employment impact and potential to attract additional suppliers and related development.
Construction timelines and contractor details for the Lilly facility have not yet been released.
