Evonik to Invest $100M in Indiana API Manufacturing Hub

Editor’s Take: Geopolitical uncertainties have underscored the importance of having regional production available close to patients. As companies seek to establish more resilient supply chains, onshoring is one of the ways they are moving forward.

Over the next five years, Evonik is investing $100 million to modernize key equipment at its Lafayette (Tippecanoe), Indiana facility, with the goal of enhancing reliability, enabling greater automation, and improving ergonomics and efficiency.

This investment is supported by local government and positions Evonik to meet the rapidly growing demand for U.S.-based drug substance CDMO services.

“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,” said Guido Skudlarek, head of the Health Care business line at Evonik.

Acquired from Eli Lilly in 2010, Evonik’s Tippecanoe site is the company’s second-largest U.S. site and one of the world’s largest API facilities. It is home to the industry’s biggest high-potency API (HPAPI) operation with 170 m³ of dedicated capacity and advanced containment systems (OEL down to 0.1 μg/m³). The site also offers 860 m³ of reactor capacity for general APIs, 2,500 m³ for large-scale fermentation, and a technology portfolio spanning 10 advanced platforms.

The modernization at the Tippecanoe site is an investment into Next Generation Technologies which will help preserve technology leadership and enhance energy-efficient processes.

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