Evonik plans to spend roughly €80 million ($93.5 million) to upgrade the fermentation technology at its facility in Slovenská Ľupča, Slovakia, as part of an expansion that will add 50 new jobs.
The project marks the second expansion at the so-called Fermas facility in recent years. The company previously broke ground in 2022 on a rhamnolipids plant at the site.
Biotechnological processes like fermentation enable the development of new products and solutions that deliver sustainability perks over more conventional manufacturing methods, the company said in an April 22 press release.
Evonik said that the upgraded capabilities at the site will specifically support the CDMO services of its drug substance business.
“With demand for complex pharmaceutical ingredients continuing to rise, our enhanced biotechnology capabilities will enable us to support customers with reliable, scalable, and sustainable production,” Guido Skudlarek, head of Evonik’s healthcare unit, said in the release.
The investment comes on the heels of a years-long restructuring plan that saw the German chemicals company and contract manufacturer let go of about 2,000 employees.
The reorganization—dubbed “Evonik Tailor Made”—was announced in March 2024 and aimed to cut costs by about 400 million euros annually by this year. Most of the layoffs were expected to affect management positions, the company said at the time.