Gerresheimer AG announced investments to rapidly expand its manufacturing, supply and logistics capability for glass vials in the U.S. The project will be supported by the Biomedical Advanced Research and Development Authority (BARDA), part of the Office of the Assistant Secretary for Preparedness and Response (ASPR) at the U.S. Department of Health and Human Services (HHS) with contracting support from the Department of Defense (DOD). It will expand Gerresheimer's capacity by new vial forming lines, including dimensional inspection, annealing, cosmetic inspection and packaging. BARDA has agreed to provide up to approximately 66 million US-Dollar to Gerresheimer AG for this project.
The investment is part of Gerresheimer's global expansion plan and follows its formula G strategy process. Under the agreement, Gerresheimer will increase its annual production capacity in Morganton, NC with interchangeable Type 1 vials (glass borosilicate and/or aluminosilicate) and Gx Elite Glass Vials capability. BARDA's financing, with contracting support from the DOD'sJoint Program Executive Office for Chemical, Biological, Radiological and Nuclear Defense (JPEO-CBRND) and the Army Contracting Command (ACC), will strengthen the capabilities in the U.S. to respond to current and future public health emergencies.
The vials can be used in vaccination campaigns against infectious diseases, such as COVID-19 and others. This expansion of the facility will further strengthen Gerresheimer's leading market position in best-in-class elite vials. As part of the project, the existing facility in North Carolina will be enlarged by the installation of new vial forming lines and a new warehouse.
As the investment will lead to an increase in the number of people employed, new offices will also be part of the expansion plan.