Vetter Announces Plan to Build Manufacturing Site in Germany with €1.5 Billion CDMO Investment

Vetter, a long-standing contract development and manufacturing organization (CDMO), has announced a €1.5 billion investment plan to expand its global footprint, focusing on both commercial and clinical production.¹ This investment comes as the landscape for sterile injectable manufacturing is undergoing a significant shift due to rising global demand for specialized drug delivery systems. For Vetter and other firms, securing reliable capacity for vials, syringes, and cartridges is a critical factor in maintaining project timelines and ensuring market supply.

How will the expansion in Europe impact commercial supply chains?

The centerpiece of this strategic growth is the construction of a new commercial production plant in Saarlouis, Germany. Having acquired the 95-acre site in late 2024, the CDMO has submitted the building permit application for a multi-phase facility that is expected to create up to 2,000 jobs over the long term. Construction is scheduled for the second quarter of 2026, with the first phase representing a €480 million investment.¹

Senator h.c. Udo J. Vetter, chairman of the advisory board and member of the owner family, emphasized the strategic nature of this move in a Vetter press release stating,¹ "With the construction of our new production facility in Germany, we continue on our path to sustainable growth. Long-term success derives from striking the right balance between stability and expansion.”

This site, which is projected to reach operational readiness by 2031, is designed to bolster the supply of vital medicines to the global pharmaceutical market. By expanding production capacity in close proximity to its headquarters in Ravensburg, the company aims to provide more robust support for commercial filling and assembly services. Regarding the regional commitment, Senator Vetter noted in a press release,¹ “With our investments in the state of Saarland, only a five hour drive away from our headquarters in Ravensburg, we are strengthening our commitment to Germany’s economic landscape while reaffirming our engagement as a strategic partner to the global pharmaceutical market.” This project is further supported by the European Commission, which has approved up to €47 million in state aid.¹

Why is clinical development infrastructure being prioritized in the United States?

Parallel to the large-scale commercial expansion in Europe, there is a clear focus on the earlier stages of the drug life cycle within the US market. Vetter recognizes that early clinical development requires specialized aseptic environments and high-quality services to ensure data integrity and patient safety.¹ To meet these requirements, construction recently began on a new clinical production site in Des Plaines, Illinois.

This facility is part of a broader initiative to support pharmaceutical and biotech companies from the initial drug product development phase through to clinical filling. For over 75 years, the organization has operated as an independent pharmaceutical service provider, and this expansion into the United States complements its existing manufacturing sites in Germany and Austria.¹ The strategic alignment of these resources allows for a smoother transition between clinical phases and eventual commercialization.

How else is Vetter looking to shape the industry in 2026?

Environmental stewardship has become a critical metric for supply chain professionals. The organization’s 2025 EcoVadis Platinum status and its Science Based Targets initiative validation for a 58.8 percent emission reduction underscore this commitment to responsible manufacturing.²

Managing director Henryk Badack noted in a Vetter press release,² “We are proud of the various steps we are taking to reduce our company’s carbon footprint. Both the validation by the SBTi and the Platinum rating from EcoVadis emphasize our strategic commitment to both people and planet and bring us one step closer to effective climate protection and to achieving overall sustainabilty goals.”

Gabriel Fischer, team lead Environment, Health & Safety, added in a press release,² “In partnership with a local partner supplying biomethane directly to our sites, we unite climate protection with regional value creation and energy security—while significantly reducing our environmental footprint. Alongside this, expanding our photovoltaic capacity and using state-of-the art technology like biomethane further demonstrates that sustainability and innovation can go hand in hand.”

References:

1. Vetter Pharma International GmbH. Pharmaceutical Service Provider Vetter Pharma to Build New Manufacturing Site in Germany. Press Release. Jan 29, 2026.
2. Vetter Pharma International GmbH. Vetter Achieves Top Sustainability Rating and Expands Climate Goal Commitments. Press Release. Jan 21, 2026.