Editor’s Take
Geopolitical uncertainties have highlighted the need for regional production close to patients. Companies are focusing on establishing more resilient supply chains through onshoring initiatives.
Investment in Modernization
Over the next five years, Evonik will invest $100 million to modernize key equipment at its Lafayette (Tippecanoe), Indiana facility. This initiative aims to enhance reliability, promote automation, and improve ergonomics and efficiency.
Local government support backs this investment, allowing Evonik to meet the growing demand for U.S.-based drug substance Contract Development and Manufacturing Organization (CDMO) services.
Strategic Necessity
Guido Skudlarek, head of Evonik’s Health Care business line, emphasized, “Strengthening our U.S. drug substance business is a strategic necessity. With demand surging, Tippecanoe plays a pivotal role in creating a more resilient and globally balanced asset footprint.”
Significant Facility
Evonik’s Tippecanoe site, acquired from Eli Lilly in 2010, is the company’s second-largest U.S. facility and one of the largest API sites globally. It houses the industry’s largest high-potency API (HPAPI) operation, featuring 170 m³ of dedicated capacity and advanced containment systems (OEL down to 0.1 μg/m³). The site also boasts 860 m³ of reactor capacity for general APIs, 2,500 m³ for large-scale fermentation, and a technology portfolio covering 10 advanced platforms.
Next Generation Technologies
The modernization investment will focus on Next Generation Technologies to maintain technological leadership and improve energy-efficient processes.
Learn More
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