Fresenius Kabi set for tax breaks after commiting to invest $250m in US plant

By Dan Stanton

- Last updated on GMT

The Melrose Park, Il facility will undergo $250 of investment over the next decade. Image: Google Streetview
The Melrose Park, Il facility will undergo $250 of investment over the next decade. Image: Google Streetview

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Fresenius Kabi has said it will increase manufacturing capacity and create jobs at a site in Illinois in a move that will earn the German firm US tax breaks.

The sterile injectables firm announced it will invest around $250m (€220m) at its Melrose Park, Chicago site over the next decade.

The project will create several manufacturing suites equipped with automated aseptic filling lines, expanded lyophilization capabilities, and formulation areas, as well as a dedicated warehouse for raw materials.

Fresenius Kabi spokesman Matt Kuhn did not disclose how much extra capacity would be added to the site due to “competitive reasons”​ but told this publication the firm was granted a tax credit and exemption status from the state.

“Fresenius Kabi received designation as a High Impact Business [HIB] in Illinois and this requires significant financial investment,”​ he said.

Under the incentive​, manufacturers get tax credits and exemptions on building materials, utilities and purchases if they make a substantial capital investment that will create or retain jobs.


Illinois is also home to Fresenius Kabi’s US headquarters, and in total 1,500 people are employed by the firm in the state.

“We anticipate job growth as part of the expansion, though we do not have specific numbers to share at this time,”​ Kuhn said, adding the HIB programme requires “the retention of a significant number of jobs and job growth - many of which are high-skilled, technical jobs.”

He also told us the investment supports Fresenius Kabi’s long-term growth and investment strategy in the country, and such “a commitment to manufacturing in the US maximizes the security of our supply chain and helps secure US jobs.”

Fresenius Kabi is not alone in taking advantage of the HIB scheme in Illinois, with Abbot Laboratories, AbbVie, Hospira and Takeda among other pharma firms to have been granted such designation, according to the state​.

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