Merck KGaA forks out $76m to expand reagent production in China

Germany’s Merck said the investment in Nantong, China will add manufacturing capacity to provide customers with reagents for quality control and testing.

MilliporeSigma, the life sciences division of Merck KGaA, and the Nantong Economic and Technological Development Area (NETDA) signed the agreement for the expansion last week. The €70 million ($76 million) investment will enable large-scale manufacturing of high-purity reagents for quality control and testing for biopharma clients and will increase annual output by several thousand tons.

The firm will construct a reagent manufacturing plant at the Nantong site, which MilliporeSigma said is a significant transportation hub in the Yangtze River Delta region. The 40,000 square meter facility is expected to be operational by 2026 and will offer quality control and testing to clients in the pharmaceutical, industrial, and food and beverage sector.

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“Continued growth of the life science and biopharma industries in China have increased demand for high-quality products and a more resilient supply chain,” said Jean-Charles Wirth, head of Science & Lab Solutions, MilliporeSigma.

“To ensure seamless supply for our customers, we have accelerated our expansion plan in China. In doing so, we continue to support the life science industry and enhance our ability to better serve our customers’ need for high-quality and reliable products.”

According to the company, this investment reflects its strategy in China as well as expanding its footprint and upping supply chain security in alignment with its customers.

This is not the first investment the firm has made in China. MilliporeSigma completed the first construction phase of its China Biologics Testing Center, opening a viral clearance (VC) laboratory in Shanghai in September 2022.

Moreover, in the same year the company invested €100 million ($108 million) to accelerate single-use manufacturing in WuXi.