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Celltrion to acquire Eli Lilly plant in U.S. as part of tariff strategy

Published: 23 Sep. 2025, 20:42 Updated: 24 Sep. 2025, 16:09

A Celltrion logo [JOONGANG ILBO]

Celltrion signed a $330 million deal on Tuesday to acquire an Eli Lilly and Company biopharmaceutical plant in New Jersey, securing a U.S. production base as part of its strategy to reduce tariff risks.

The plant, located in Branchburg, New Jersey, covers 150,000 square meters (1,614,586 square feet) and includes production lines, a logistics center, a technical support building and an operations building. It also sits on an additional 36,000-square-meter plot reserved for future expansion.

Celltrion plans to invest a total of 700 billion won ($500 million) in acquisition costs and initial operations. It also expects to spend more than another 700 billion won on the idle land to expand capacity, bringing total capital investment to at least 1.4 trillion won. Celltrion’s U.S. subsidiary is leading the acquisition, with the company aiming to complete the process by the end of 2025.

“With this local production base, we now have a one-stop supply chain for the U.S. market, covering manufacturing to sales,” the company said. “The facility will reduce logistics costs and allow us to produce directly at lower expenses than outsourcing, which will strengthen competitiveness.”

Celltrion Chairman Seo Jung-jin said during an online briefing on Tuesday that managing under uncertainty limits long-term business planning.

Seo Jung-jin, chairman of Celltrion Group, holds an online briefing on Sept. 23. [YONHAP]

“For a company with the United States as its main market, the way to avoid tariff risks is to produce in the United States,” Seo said. “This acquisition removes uncertainty related to tariffs.

"Celltrion expects savings of 1.5 trillion won through avoiding tariff risks, eliminating new construction costs, securing production facilities and hiring local staff."

Addressing concerns following the detention of Korean workers in Georgia earlier this month, Seo said, “We will fully retain the plant’s local work force, and most of the Korean employees assigned there will go with E-2 visas, so there will be no problem.”

Seo was referring to a large-scale immigration raid conducted by U.S. Immigration and Customs Enforcement at a battery plant construction site in Ellabell, Georgia, run jointly by Hyundai Motor Company and LG Energy Solution. Authorities detained about 475 workers; more than 300 were Korean.

The detention stemmed from allegations that some had entered the United States on tourist visas and were illegally employed at local factories, sparking scrutiny of visa compliance for Korean firms operating there.

"Half the facility will continue producing Eli Lilly products under a contract manufacturing agreement, while Celltrion’s own products are scheduled to be manufactured there starting in 2027," Seo said. "Decisions on which products to produce locally will be made this year."

Other Korean pharmaceutical and biotech firms are also racing to establish U.S. production bases as Washington prepares to announce a list of medical products subject to tariffs.

Last month, Made Scientific, the U.S. subsidiary of GC, opened its headquarters and a 5,570-square-meter drug manufacturing facility in Princeton, New Jersey.

CHA Biotech’s U.S. subsidiary Matica Biotechnology operates a 500-liter cell and gene therapy plant in College Station, Texas, and plans to expand capacity to 2,000 liters within two years.

Lotte Biologics acquired a Syracuse, New York, plant from Bristol Myers Squibb in 2022, securing a North American production hub. SK Pharmteco, a subsidiary of SK Group specializing in contract development and manufacturing, acquired U.S. cell and gene therapy company CBM in 2023.

“The goal is to remove tariff risks and market uncertainty while gaining leverage in signing production contracts with global pharmaceutical companies,” an industry source said. “We expect more Korean firms to secure U.S. manufacturing bases.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM KYUNG-MI [[email protected]]