Eli Lilly to invest €2.7 billion in new factory near Leiden

US pharmaceutical company Eli Lilly said on Monday it will invest around €2.7 billion in a new production facility near the Leiden Bioscience Park in Katwijk, creating 500 permanent jobs and around 1,500 construction jobs.

The plant will produce oral medicines for diabetes, obesity, cancer and other chronic diseases.

“Billions of pills will be made here — enough for the whole world,” said chief executive Dave Ricks. The site will also manufacture orforglipron, Lilly’s first oral GLP-1 drug for obesity, which is expected to be submitted for regulatory approval later this year.

Ricks said the investment would strengthen Lilly’s ability to meet growing European demand. “Localised manufacturing ensures we can quickly respond to regional needs and accelerate distribution within Europe,” he said.

The Leiden site was chosen for its skilled workforce, proximity to Schiphol airport and the port of Rotterdam, and the presence of the European Medicines Agency in Amsterdam. “It’s convenient for communicating with the regulator responsible for our sector,” Ricks said.

Dutch economic affairs minister Vincent Karremans welcomed the decision. “The arrival of Lilly will not only bring new jobs and investment but also boost collaboration in innovative medicines, helping us work together on solutions that truly improve people’s health and lives,” he said.

Some permits still need to be approved, covering issues such as nitrogen, energy and accessibility. “We have to show that what we want to build here is feasible,” said Katwijk development chief Gerard Mostert.

The first medicines are expected to roll off the production line by 2030.

The news is a welcome boost for Leiden, which has recently lost one major drugs company. In October Dutch Belgian biotech company Galapagos said it was ending its efforts to develop a cancer treatment and that company’s research centre in Leiden will close.

Investment climate

The investment comes amid renewed debate over the Netherlands’ business climate. Former ASML chief Peter Wennink, who is leading a government review of the country’s attractiveness to companies, recently warned that the Netherlands needs major investment in physical infrastructure, energy capacity and knowledge networks.

There have also been string of reports about the decline in the Netherlands’ popularity as a place to invest by PwC, the University of Amsterdam and employers’ organisations.

“Regulatory pressure, fiscal rules and unpredictable policy are key reasons,” Henk Volberda, professor of strategy and innovation at the University of Amsterdam told broadcaster NOS.

“Energy-intensive sectors such as manufacturing and chemicals suffer most from the overstretched power grid and high energy costs. But many things still work well — the Netherlands offers a good quality of life, strong digital infrastructure and a highly educated workforce.”