Weeks after telegraphing a series of upgrades to its Mexico operations over the next five years, Bayer is rolling up its sleeves with plans to overhaul a drug ingredient facility in Veracruz.
Bayer will beef up its production capacity by pumping 800 million Mexican pesos ($43 million) into its Orizaba-Ixtaczoquitlán plant in the eastern Mexican state.
Under the project, Bayer will fine-tune its production of active pharmaceutical ingredients, develop a new line of sterile hormonal injectables and chart upgrades to the infrastructure, systems and laboratories at the site, the company said in a recent post on X.
Bayer’s Veracruz plans follow an announcement earlier this month that the company would invest 3 billion pesos in Mexico over the next five years, with the greatest emphasis on expanding, modernizing and refurbishing the German drugmaker’s local production sites.
Aside from the project in Veracruz, Bayer is also expanding a drug production site in Lerma, which is situated some 34 miles west of Mexico City. Given the company’s large presence in crop sciences, several other aspects of Bayer’s Mexico investment plan are more agricultural in nature.
Bayer has been operating in Mexico for a little over a century and currently boasts eight production sites, six research centers and a corporate office in the country that employ, in total, around 4,100 people, according to the company’s website.
The facility in Veracruz houses two plants, with the chemical plant for APIs primarily producing steroid hormones, Bayer says online.
The second plant at the site, which Bayer refers to as a pharmaceutical plant, produces a range of products such as ampoules, prefilled syringes, suppositories and tablets for hormonal treatments, contraceptives, antifungals and anti-inflammatory drugs.
Of the new investment, Bayer will focus 600 million pesos on the Veracruz API facility, which the company notes is one of the four it operates for drug ingredient production around the world. The remaining 200 million pesos will help optimize the pharmaceutical plant and help the German drugmaker develop its new line of sterile hormone injectables, Bayer noted in its original investment announcement earlier this month.
The company did not immediately respond to Fierce Pharma’s request for more detail on the expansion.
Bayer’s renewed investment push in Mexico comes as the drugmaker brings a beloved local medicine stateside. Looking to improve its reach among the U.S.’ Hispanic population, Bayer recently launched the pain relief pill brand Aspirina—which boasts a 99% awareness rate in Mexico—at select Walmart and Walgreens stores in the U.S.
More broadly, Bayer has been on a global restructuring drive under CEO Bill Anderson, who took the helm at the German conglomerate in 2023. As part of the corporate overhaul, Bayer has reduced its head count by more than 12,000 people over the last two years.
For all of 2025, Bayer expects to generate revenue between 46 billion euros ($53.5 billion) and 48 billion euros ($55.8 billion).