Company plans to invest $1 billion to build new manufacturing facility in Concord
Eli Lilly and Company, a global healthcare and biopharmaceutical company, plans to invest $1 billion and create nearly 600 new jobs in Cabarrus County, Governor Roy Cooper announced today. The company will build a new pharmaceutical manufacturing facility in Concord, demonstrating again the presence of the biotechnology industry in all regions of North Carolina.
“Lilly’s choice brings more good jobs to North Carolina from one of our most important industries,” said Governor Cooper. “North Carolina has become a premier hub for the world, thanks to our exceptional workforce and commitment to education.”
Lilly, with headquarters in Indianapolis, Indiana, unites caring with discovery to create medicines that make life better for people around the world. Throughout it’s nearly 150-year history, Lilly has played a pioneering role in developing life-changing medicines – from insulin, which made diabetes no longer fatal, to COVID-19 treatments, which have helped save lives in the fight against the pandemic. Lilly is committed to investing for the long-term in innovation that solves the world’s most significant health challenges.
The new facility in Concord will utilize the latest technology to manufacture parenteral (or injectable) products and devices and increase the company’s manufacturing capacity. 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 will create positions for engineers, scientists, and manufacturing operators, among others. Lilly currently has seven manufacturing sites located in the United States in North Carolina, Indiana, New Jersey and Puerto Rico.
“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.”
“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.”
The North Carolina Department of Commerce led the state’s support for the company during its site evaluation and decision-making process.
Although wages will vary depending on position, the average salary for all the new positions will be $70,555, which is greater than the current average wage in Cabarrus County of $43,687.
Lilly’s project in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. 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.
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. More information on the state’s economic tier designations is available here.
“We’re excited to welcome these new jobs and this major investment from one of the best know pharmaceutical companies in the world,” said N.C. Senator Paul Newton. “Lilly’s decision to build in Cabarrus County will shine the spotlight on everything our community offers to growing, world-class companies.”
Partnering with the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina on this project were the North Carolina General Assembly, the North Carolina Community College System, the North Carolina Department of Transportation, the North Carolina Biotechnology Center, Cabarrus County, the City of Concord and the Cabarrus Economic Development Corporation.