Merck breaks ground on $3 billion Virginia plant

Merck & Co. Inc. announced October 20 it had started construction on a new $3 billion pharmaceutical products plant in Elkton, Virginia. According to a company statement, the 400,000-square-foot site will employ an estimated 500 people, according to a company release.

The new plant will add production for new small molecule manufacturing and testing for active pharmaceutical ingredients and drug products to Merck’s existing Elkton campus, which the company has occupied for about 85 years.

In a company release, Merck touted the new factory as only a part of its planned $70 billion investment in its U.S. domestic pharmaceutical operations. In 2025, it has so far made plans or broken ground on almost $3 billion in new factories and R&D sites:

• in March, the company said it would build a North Carolina plant for vaccine components;
• in April, it followed that with plans for a $1 billion biologics factory in Delaware;
• and in June, it said it would spend $895 million to expand a plant for animal medicine in Kansas.

In its October 20 statement, Merck also said it had plans to spend $3 billion in unspecified “biologics and small molecule manufacturing sites” in the U.S., and $3.5 billion more at its New Jersey headquarters.

What people are saying

“Today is an important milestone for Merck, for Virginia, for manufacturing in the United States and, most importantly, for the patients we serve,” said Merck CEO Robert M. Davis. “This investment helps advance our goal of providing new, innovative treatment options for people facing serious health challenges in the U.S. and around the world.”

“Merck’s transformational $3 billion commitment to locate its Center of Excellence marks a giant leap forward for both America’s and Virginia’s life sciences sector,” said Gov. Glenn Youngkin. “It deepens the company’s long-standing commitment to innovation and strengthens the Commonwealth’s position as the emerging national leader in biopharmaceutical advanced manufacturing and life sciences. With hundreds of new jobs and cutting-edge capabilities coming to the Shenandoah Valley, we’re building a future where Virginians lead the way in developing lifesaving medicines for patients around the world.”

“Merck’s investment announced today shows exactly what happens when pro-growth policies like H.R. 1 are signed into law,” said NAM CEO Jay Timmons. “By strengthening and making permanent a full suite of competitive tax policies, Congress provided manufacturers with the tax certainty we need to plan, invest, hire and lead. Manufacturers will continue to work with policymakers to advance a comprehensive manufacturing strategy that not only helps manufacturers win — it helps America win.”

“For almost 85 years, our Elkton site has been a beacon of innovation in our proud legacy of delivering leading-edge science for patients,” said Sanat Chattopadhyay, executive VP and president, Merck Manufacturing Division. “We’re proud to be part of the Elkton community, where generations have contributed to our important work with determination, accountability, teamwork and grit.”

Manufacturers investing in Virginia

AstraZeneca increases stake, breaks ground on $4.5 billion Virginia pharmaceutical plant
The new factory will produce cancer treatments as well as GLP-1 weight control medicine.

Dover Food Retail Co. spends $20M to relocate manufacturing to Virginia
The company's Anthony brand of grocery store refrigerators is moving into to another Dover brand's factory.

Eli Lilly and Company invests $5 billion to build pharmaceutical manufacturing facility in Virginia
The new site will be the company’s first dedicated, fully integrated active pharmaceutical ingredient (API) and drug product facility for bioconjugates and monoclonal antibodies.

Investing in American manufacturing in 2025 

This map shows where manufacturers are choosing to invest their resources, whether they are building new production facilities or expanding existing plants.