Johnson & Johnson plans to spend more than $55 billion to build four plants in the U.S. over the next four years, it said on Friday, as the threat of drug import duties by the Trump administration compels companies to expand their manufacturing operations domestically.
J&J said one of the new plants will be built in Wilson, North Carolina, where the pharmaceutical giant officially broke ground on Friday, but did not reveal where the others would be set up. The drug and medical device maker said the investment represents a 25% increase compared to the last four years.
Last month, drugmaker Eli Lilly said it would spend at least $27 billion in new U.S. plants over the next five years, as companies brace for the impact of a potential 25% tariff on pharmaceutical imports.
J&J, Pfizer and other firms that operate large non-U.S. plants such as in Ireland could be at risk. Trump, who campaigned on a promise to boost domestic manufacturing, has been piling pressure on drugmakers since taking office to move medicine production to the United States.
J&J, the world’s largest drugmaker by revenue, said it already has more manufacturing facilities in the U.S. than in any other country. It also plans to expand its existing U.S. sites and build new research and development infrastructure.
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Companies in other sectors, such as Apple, have also made manufacturing announcements in recent weeks. Last month, the iPhone maker announced plans to spend $500 billion in the U.S. over the next four years, but analysts said some of that included current commitments.
J&J’s site in Wilson, where it plans to invest more than $2 billion, is expected to create 5,000 jobs during construction, and more than 500 positions across the state.
The site will focus on producing medicines used for treating cancer, immune-mediated and neurological diseases, the New-Jersey based firm said.
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