Merck Animal Health and the state of Kansas unveiled a joint agreement Thursday for an $895 million expansion of the company’s manufacturing facility in De Soto.
The animal health manufacturer, which develops and markets a range of veterinary products and services, including medications and vaccines, along with Kansas Gov. Laura Kelly announced the expansion, which will be constructed on the existing Merck-owned property at 35500 W. 91st St.
The expansion will include an $860 million investment in Merck’s existing manufacturing facility in De Soto and $35 million in its research and development labs, according to a press release from the company.
Merck says the expansion is expected to create roughly 200 full-time jobs. It currently has about 300 employees on staff at the De Soto facility.
Kelly’s office touted the expansion as the second-largest private investment in Kansas history — behind the $4 billion Panasonic elective vehicle battery plant nearby — and the largest economic development project for Merck Animal Health.
Facility to play “pivotal role”
The 200,000-square-foot manufacturing facility is expected to play a “pivotal role” in the manufacturing of Merck Animal Health’s products.
Merck say he expanded facility will help the company focus on advancing the company’s global drug discovery and development initiatives, according to the Merck press release.
“Our De Soto manufacturing facility is strategically located in the heart of the Animal Health Corridor. This region is renowned for its concentration of animal health companies, fostering an unparalleled ecosystem for innovation, collaboration and industry leadership,” Merck Animal Health President Richard DeLuca said.
Merck is part of the KC Animal Health Corridor, a group of more than 300 animal health companies, stretching from Manhattan, Kansas, to Columbia, Missouri.
“This investment in our site is designed to increase Merck Animal Health’s ability to meet the growing customer demand for its portfolio of animal biologics products and ensure the company remains at the forefront of innovation in the animal health sector,” DeLuca said.
Merck received a “robust incentive package” that made “Kansas an attractive location for this investment,” a Merck spokesperson said in an email to the Johnson County. They did not specify the details of the package because they’re still being finalized.
To note, the Panasonic EV plant project came with a historic package of state incentives totaling more than $800 million.
Work on expansion is expected to start immediately
The project will expand filling and freeze dryer capacity for large molecule vaccines and biologic products at the De Soto facility, Merck said.
Preliminary work on construction of the facility will start immediately, the company says. Site construction is expected to create about 2,500 construction jobs in addition to the roughly 200 full-time workers Merck expects to employ at the facility once its complete.
The company says it hopes to start manufacturing products at the expanded facility in 2030.
“The opportunities and ripple effects of having almost $1 billion surge into the local economy will have far-reaching and long-lasting reverberations across the entire state,” Kansas Lieutenant Governor and Secretary of Commerce David Toland said in a press release Thursday. “Historic investments such as these truly benefit all Kansans, both now and into the future.”
The announcement comes as De Soto continues to grow
The announcement of the facility comes during a time of unprecedented growth for De Soto in northwestern Johnson County.
The centerpiece of that growth is the Panasonic EV battery plant, which is expected to start production soon and ultimately bring about 4,000 jobs to the area.
At Thursday’s Johnson County Board of County Commissioners meeting, Chairman Mike Kelly expressed excitement for the project.
“Now, the three biggest economic development projects in the state of Kansas have happened in the last two years in Johnson County,” he said.
The partnership between Merck and the state shows how both are committed to continued growth in the area, Kelly said.
“Historic investments such as these truly benefit all Kansans, both now and into the future,” she said.
The expansion also continues to deepen the relationship between Merck and De Soto, De Soto Mayor Rick Walker said in an e-mail to the Johnson County Post.
“They’ve been an outstanding partner for a generation and their decision to invest again so significantly in our community is a testament to the decades-long relationship we have enjoyed,” he said. “We’re looking forward to sharing a vibrant future with them.”
Other De Soto News: Panasonic hiring as De Soto EV battery plant gets set to start production
