Bayer commits $2.2 billion to new pharmaceutical plant in Ohio

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German pharmaceutical and life sciences group Bayer is set to invest $2.2 billion in a new pharmaceutical manufacturing facility in New Albany, Ohio, strengthening its production capacity in the United States as Washington pushes drugmakers to increase domestic manufacturing.

The project represents another major commitment by Bayer to its US operations. The company said its latest investment builds on more than $7 billion it has allocated over the past five years to pharmaceutical research, development and manufacturing activities across the country.

Bayer Chief Executive Officer Bill Anderson described the United States as a strategically important location for both production and innovation, saying the new project reflects the company's long-term commitment to the market.

New facility will target major therapeutic areas

The planned New Albany complex will manufacture pharmaceutical products intended for patients suffering from several major diseases, including cancer as well as cardiovascular and kidney conditions.

Construction and commissioning will take place in stages. Bayer expects the first part of the facility to become operational in 2031, followed by a second phase scheduled for 2034.

The investment is also expected to have a significant employment impact. Bayer estimates that the completed site will support around 600 highly skilled positions, while construction is expected to generate approximately 1,500 jobs.

Investment comes amid US pressure for domestic drug production

Bayer's announcement comes as pharmaceutical manufacturers face growing pressure from the US administration to expand production within the country and reduce reliance on overseas manufacturing.

The administration of President Donald Trump has introduced tariffs affecting certain patented medicines manufactured abroad and has also announced plans for tariffs on imported generic drugs from 2028. The broader policy approach seeks to encourage pharmaceutical companies to establish or expand manufacturing operations on US soil.

Companies that commit to building production facilities in the United States are expected to have access to lower tariff rates than businesses that continue to rely heavily on imports.

Against this backdrop, Bayer's Ohio project adds to a broader wave of investment aimed at reinforcing domestic pharmaceutical supply chains.

Ohio becomes a key destination for Bayer's expansion

New Albany, located in Ohio, will host a facility designed around high-value pharmaceutical production rather than Bayer's agricultural chemicals activities, another major area of the German group's business.

The scale and long implementation timeline of the project underline the strategic nature of the investment. With production planned to begin at the start of the next decade and a second phase extending into 2034, the facility is being developed as a long-term component of Bayer's US manufacturing network.

The project also illustrates how trade policy, industrial investment and pharmaceutical supply security are increasingly interconnected in the US market. For Bayer, the Ohio facility will expand its manufacturing presence while positioning a larger share of production closer to American patients and healthcare demand.