Evonik invests US$93.5M to increase fermentation capacity in Slovakia for pharmaceutical manufacturing

GERMANY—Evonik will invest about €80 million (US$93.5 million) to modernize and expand fermentation technology at its production site in Slovenská Ľupča, strengthening its pharmaceutical manufacturing capabilities and creating around 50 new jobs.

The investment focuses on upgrading the company’s Fermas facility, which is an important part of Evonik’s biotechnology operations.

By expanding production capacity and advancing technology, the company aims to meet rising demand for complex pharmaceutical ingredients while offering more efficient, sustainable manufacturing services.

Strengthening biotech manufacturing

Evonik said advanced fermentation processes allow manufacturers to produce ingredients biologically rather than relying solely on traditional chemical production.

These methods can lower environmental impact, improve efficiency, and support the development of specialized products used in healthcare and other industries.

The Slovenská Ľupča site will support Evonik’s contract development and manufacturing organization (CDMO) services within its drug substance business.

CDMOs help pharmaceutical companies develop and manufacture active ingredients and other essential materials for medicines.

According to the company, the expanded site will provide customers with dependable large-scale production options as demand for sophisticated drug ingredients continues to grow.

Guido Skudlarek, head of Evonik’s healthcare unit, said the stronger biotechnology platform will help the company deliver reliable, scalable, and sustainable manufacturing solutions to pharmaceutical partners.

Second major expansion at the site

This marks the second major investment at the Fermas facility in recent years.

In 2022, Evonik began construction of a rhamnolipids plant at the same location, further signaling the company’s long-term commitment to biotechnology in Slovakia.

Rhamnolipids are bio-based surfactants used in a range of industrial and consumer applications.

That earlier project expanded the site’s role beyond pharmaceutical manufacturing and into sustainable specialty chemicals production.

With the latest investment, Evonik continues to position the facility as a strategic center for biotech innovation and commercial-scale production in Europe.

Investment follows company restructuring

The announcement comes after Evonik completed a broad restructuring program aimed at simplifying operations and reducing costs.

The initiative, known as “Evonik Tailor Made,” was introduced in March 2024.

Under the plan, the company targeted annual savings of about €400 million (US$468 million) by the end of this year.

As part of the reorganization, Evonik reduced its workforce by around 2,000 positions, with many of the cuts affecting management roles.

While the restructuring focused on efficiency, the new investment in Slovakia highlights Evonik’s intention to continue funding growth areas in biotechnology, healthcare manufacturing, and sustainable industrial processes.

The upgraded Fermas facility is expected to enhance production flexibility, increase service capacity, and support pharmaceutical clients seeking advanced fermentation-based manufacturing solutions in global markets.