Johnson & Johnson to spend $1 billion on new cell therapy plant in Pennsylvania

Johnson and Johnson announced February 18 that it would build a new $1 billion cell therapy manufacturing plant in Lower Gwynedd, Montgomery County, Pennsylvania. The site will employ 500 once fully operational to produce medicines for treating cancer as well as neurological and immune-mediated diseases. The specifics follow a January 9 announcement the New Jersey-based company would build new factories in Pennsylvania and North Carolina and a 2025 pledge to spend $55 billion on stateside manufacturing by 2029.

According to the Pennsylvania governor’s office, the state will invest $41.5 million in the site through a mix of tax credits, grants and indirect aid . J&J will receive $12 million in tax credits from the Pennsylvania Department of Community & Economic Development via its Qualified Manufacturing and Reinvestment Deduction program, $2 million more in tax credits from the Manufacturing Tax Credit program, a $15 million grant from the Strategic Investments to Enhance Sites program and a $10 million “Pennsylvania First” grant. Pennsylvania officials also indicated the state will award a $2.5 million Redevelopment Assistance Capital Program to local education to support staffing at the new site. Lastly, J&J will receive assistance via Pennsylvania’s Permit Fast Track Program.

The new factory is meant to expand Johnson & Johnson’s production capacity in the U.S. In a statement, the company noted it has a $10 million annual impact on the Pennsylvania economy through ten existing manufacturing, R&D, distribution and office locations in the state.

What people are saying

“For 140 years, Johnson & Johnson has been a leading innovator in American healthcare, and we are honored to continue advancing that legacy in Pennsylvania,” said Joaquin Duato, CEO of Johnson & Johnson. “By uniting scientific excellence with state-of-the-art manufacturing and strategic investment, and by working collaboratively with our communities, we are delivering for patients and creating significant opportunities for workers and families.”

“Pennsylvania is a powerhouse for innovation and manufacturing in the life sciences,” said Pennsylvania Gov. Josh Shapiro. “Just a few years ago we weren’t even on the field - but today we’re competing and winning. We’ve done it by creating the first economic development plan for Pennsylvania in 2 decades, and following through on it by cutting red tape, making strategic investments in key industries like the life sciences, and strengthening our workforce. That’s why companies like Johnson & Johnson are choosing to double down on their investments here in our Commonwealth - because they know we’ve got the strategy, the workforce, and the speed they need to succeed.”

“Pennsylvania leads in life sciences and advanced manufacturing because we consistently deliver what companies like Johnson & Johnson need to succeed: a skilled workforce, premier research institutions, and proven manufacturing strength,” said U.S. Senator Dave McCormick. “This $1 billion-plus investment in a new Lower Gwynedd facility is a testament to that leadership and will produce life-changing treatments for patients, along with new and good jobs for our Commonwealth.”

“Our region is home to world-class healthcare, science and research — and the opening of Johnson & Johnson’s cell therapy manufacturing facility in Lower Gwynedd expands its long tradition of leadership in Pennsylvania,” Representative Madeleine Dean said. “J&J’s new site will promote job growth, foster innovation, and, most importantly, bring life-saving medicine to people around the country. I look forward to their continued success.”

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