Evonik invests US$100M to expand Indiana API manufacturing as demand for US CDMO services grows

USA—German specialty chemicals company Evonik will invest US$100 million to modernize and expand its active pharmaceutical ingredient (API) manufacturing operations in Lafayette, Indiana, as demand for U.S.-based contract development and manufacturing (CDMO) services continues to rise.

The investment will be rolled out over the next five years at the company’s Tippecanoe Labs site, one of the world’s largest API manufacturing facilities.

The campus also houses the industry’s largest high-potency API operation and serves as a key production hub within Evonik’s global small-molecule drug substance network.

Modernising a strategic manufacturing hub

Evonik will use the funding to upgrade major production assets, including large reactors and other critical processing systems.

The improvements will increase manufacturing reliability, support greater automation, and enhance operational efficiency and workplace ergonomics.

The company said the expansion will also strengthen its ability to manufacture increasingly complex APIs.

These molecules are becoming more common in therapies for cancer, metabolic disorders, and cardiovascular diseases, creating greater demand for advanced manufacturing capabilities.

Guido Skudlarek, Head of Evonik’s Health Care business, said strengthening the company’s U.S. drug substance operations has become a strategic priority as customer demand continues to grow.

He noted that the Tippecanoe facility plays a central role in building a more resilient and geographically balanced manufacturing network.

North America remains a growth priority

Although Evonik operates manufacturing sites across North America, Europe and Asia, the company said it is placing particular emphasis on expanding its North American drug substance CDMO business.

It also cited ongoing geopolitical uncertainty and growing interest in regional pharmaceutical manufacturing as key drivers behind the investment.

Evonik acquired the Tippecanoe Labs facility from Eli Lilly in 2010.

Today, the site employs more than 650 people, in addition to numerous contractors supporting maintenance, logistics, catering and security operations.

The company has not announced plans to hire additional staff as part of the project.

However, Tippecanoe Labs Site Manager Todd Wetli said the investment will help protect existing jobs while supporting the local economy.

Local authorities are also backing the project as part of regional economic development efforts.

Broader investment strategy

The Indiana project follows another major investment announced by Evonik in April.

The company committed €80 million (US$93.5 million) to upgrade fermentation technology at its facility in Slovenská Ľupča, Slovakia.

That expansion will strengthen European drug substance CDMO capacity and is expected to create about 50 new jobs.

The latest announcement comes only weeks after Evonik raised its 2026 financial outlook following stronger-than-expected second-quarter business performance.

The company said it is continuing to invest in next-generation manufacturing technologies while improving efficiency across its global operations.