With the investment, the firm will build new forming lines in North Carolina to increase the annual production capacity for glass vials in the U.S.
German manufacturing company Gerresheimer has announced an investment of $94m to expand its manufacturing, supply and logistics capability for glass vials in the US.
The company said that the project will get funding from the Biomedical Advanced Research and Development Authority (BARDA) with contracting support from the Department of Defense (DOD).
Both departments are part of the Office of the Assistant Secretary for Preparedness and Response (ASPR) at the US Department of Health and Human Services (HHS).
The new vial formation lines with dimensional inspection, annealing, cosmetic inspection, and packaging will increase Gerresheimer’s capacity.
BARDA has agreed to provide up to $66m to Gerresheimer for the project.
The firm said that the investment follows Gerresheimer’s formula G strategic process and is part of its aim for worldwide expansion.
Under the agreement, Gerresheimer will enhance its production capacity in Morganton, North Carolina with interchangeable Type 1 vials and Gx Elite Glass Vials capability.
The BARDA funding, along with contracting support from the Army Contracting Command (ACC) and DOD’s Joint Program Executive Office is expected to improve the nation’s capacity to respond to public health emergencies.
According to the firm, the vials are useful for infectious disease vaccination efforts against Covid-19 and other infections.
Gerresheimer CEO Dietmar Siemssen said: “Gerresheimer is honoured to support the US government in strengthening its pharmaceutical supply chain for current and future healthcare emergencies.
“The agreement confirms our role as a supplier of system critical products, such as pharmaceutical primary packaging solutions and drug delivery systems for the healthcare sector.
“This investment follows our strategy process formula G and accelerates our growth in this important market.”
The existing North Carolina factory will be expanded as part of the project by adding new vial formation lines and a new warehouse. New offices will also be a part of the expansion plan as the investment will boost the number of jobs available, said the company.