On an investment spree with billions of dollars’ worth of projects ongoing globally, Indianapolis-based Eli Lilly and Company chose Kenosha County for its latest – and one of its largest –investments, prompting hopes for a myriad of “waterfall effects” to the local economy, local officials say.
Plans for a sterile injectables manufacturing complex – first unveiled by Lincolnshire, Illinois-based Nexus Pharmaceuticals in 2019 with a price tag of $250 million – set the stage for Lilly to move into Kenosha County with a $3 billion investment.
Nexus had originally planned to spend more than a decade building several additions at its Pleasant Prairie campus, starting with a $100 million, 100,000-square-foot manufacturing facility, constructed in 2021 at 10300 128th Ave. in the Prairie Highlands Corporate Park.
Last April, however, Lilly acquired the facility for nearly $1 billion and then announced in December plans to spend $3 billion to expand it.
The expansion project is expected to create 750 new jobs, including operators, technicians, engineers and scientists who will be hired to run the expanded manufacturing facility.
The project is the company’s largest U.S. manufacturing investment outside of its home state and will join $23 billion in manufacturing expansions Lilly has begun since 2020.
Speed to production drove Lilly’s decision
Lilly’s Pleastant Prairie facility will primarily be producing two of its blockbuster drugs: Mounjaro, a treatment for type 2 diabetes, and Zepbound, an anti-obesity medication – both of which have exploded in demand over the past year, making it difficult for the company to keep up with demand.
“We’ll use digital automation to help us improve speed and efficiency. This will really be a cutting-edge, high-tech manufacturing site,” said Lilly chief executive officer David Ricks. “Lilly is focused on innovation, which meshes well with that of Wisconsin, including the state’s emphasis on personalized medicine, biohealth technology and precision technology, precision manufacturing and automation. This marriage hopefully will produce a great outcome, both for our company and (Wisconsin).”
With an already-built and FDA-approved site, Lilly is anticipating a shorter timeline to production than building a facility on an undeveloped site would allow. Ricks said the aspects of the deal that drew Lilly to Pleasant Prairie were the speed at which permits can be completed, access to the site during construction and available workforce.
“Speed for us is a critical factor in delivering a new production space,” Ricks said. “It’s about the logistics of getting people on-site to construct this facility, permitting, collaboration from the local to the state level to enable our project.”
Further, Ricks said the availability of vacant land surrounding the 128th Avenue site was also a draw. Already, Lilly has purchased a 324,000-square-foot industrial building in the Village of Bristol for $40.8 million, near the former Nexus Pharmaceuticals building, and an additional 31 acres of vacant land surrounding that building for $10.2 million, creating a 53.5-acre site straddling the border of Pleasant Prairie and Bristol.
Officials at the Wisconsin Economic Development Corp. have declined to release details on any tax credits Lilly could receive as part of an incentive package, stating that sharing those records related to “pending or potential opportunities” could impede economic development in the state.
Lilly has formally proposed two different expansion projects so far, according to documents submitted to the Pleasant Prairie Plan Commission.
The first is a 14,098-square-foot addition to the north of the existing building. The second is a 49,221-square-foot, three-story addition on the west side of the building. The addition to the west will mainly be used as office space while the addition to the north will be additional warehouse space. Both additions are expected to be completed by March 2026.
With the acquisition of the Pleasant Prairie and Bristol buildings, the planned Pleasant Prairie expansion and the land purchases, the company said its total planned investment in Wisconsin is $4 billion.
[caption id="attachment_605480" align="alignnone" width="1280"]
A rendering of Eli Lilly’s expanded facility.[/caption]
Lilly’s plans validate other investments, could bring partnerships
Local and state officials praised Lilly following the announcement, saying the company’s presence could bring a “waterfall effect” to the area.
“Lilly’s incredible investment here is a watershed moment for Kenosha County,” said Nicole Ryf, president of the Kenosha Area Business Alliance. “To have one of the largest pharmaceutical companies in the world choose to expand its manufacturing operations in our community is thrilling and speaks to the hard work our leadership has done across all levels to make Kenosha County a premier destination for new investment in the Milwaukee-Chicago corridor.”
Ricks said Lilly plans to work with community, technical colleges and other universities to help train the workforce for future job openings, many of which will require two- or four-year degrees.
“Gateway Technical College is excited to support Lilly through workforce development and customized training to ensure a robust pipeline of talent,” Gateway president Ritu Raju said in a statement. “Gateway has a strong track record of working with industry partners to develop programs and training that align perfectly with their needs. These partnerships have contributed to mutual success for our industries and our students.”
The investment also validates real estate developers’ investments in Kenosha County, according to developers active in the area.
Scott Yauck, president and chief executive officer of Milwaukee-based Cobalt Partners, is leading a trailblazing $400 million project in downtown Kenosha. Cobalt began construction on the first of several buildings last year, but Yauck said Lilly’s announcement encouraged the firm to more seriously pursue the second and third phases of the project.
“The fact that (Lilly) is projecting 750 higher paying jobs – engineering and related – is certainly good for our residential buildings,” Yauck said. “That’s going to draw people to the area that need housing. I think what we’re trying to establish downtown is a critical mass to really have a sustainable sort of ecosystem down there.”
Likewise, Milwaukee-based Three Leaf Partners said the announcement was encouraging for its Theater Terrace project in downtown Kenosha. Three Leaf was a partner on the development team for the 68-unit project that opened last spring.
“Lilly’s investment aligns well with the increased housing demand anticipated from such significant regional economic investments,” said John Ford, Three Leaf’s chief development officer.
