Evonik Invests $100M to Expand US Drug Substance Manufacturing

 Evonik is making a significant investment to strengthen manufacturing capabilities at its Lafayette (Tippecanoe), Indiana facility. Over the next five years, the company will invest US$100 million to modernize key equipment – including 100 m³ reactors and other critical systems – 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.

Evonik is balancing its global assets footprint across North America, Europe, and Asia, with a strategic emphasis on North America for its Drug Substance CDMO business. Evonik's Tippecanoe site is a cornerstone of the company's global CDMO network for small-molecule drug substances. The modernization at the Tippecanoe site is an investment into Next Generation Technologies which help preserve technology leadership and enhance energy-efficient processes. This investment into smart preservation CAPEX is a growth driver for the long run, strengthening cost leadership, while reducing greenhouse gas emissions, following Evonik's strict CAPEX guiding principles.