Lonza began construction on a new pharmaceutical manufacturing facility in Bend, Oregon, marking the start of a $235 million expansion project. The global contract development and manufacturing organization (CDMO) is building a large-scale commercial spray-drying facility at its historic Bend Research site, which it transitioned into a specialized pharmaceutical hub after acquiring Capsugel in 2017. The company expects the new plant to open in 2029.
What it means
The expansion adds two PSD-4 spray-drying units to Lonza’s U.S. operations, specifically designed to support spray-dried dispersion (SDD) capacity for both clinical and commercial programs. According to the company, this investment strengthens its domestic presence by advancing particle engineering technologies used in the development and manufacturing of small molecules, biologics, and mRNA therapies. The facility will serve as a key node in Lonza’s network for producing these modalities.
The project is projected to create approximately 80 permanent high-wage manufacturing jobs and generate about 650 construction positions during the build-out phase. Business Oregon Director Sophorn Cheang noted that state officials collaborated with Lonza, local leaders, and the Governor’s office for a year to facilitate the deal. As part of the incentive package, Business Oregon provided $1.6 million from the Strategic Reserve Fund, though final terms are still being negotiated. The investment builds on nearly 50 years of medicine development at the Bend site.
Lonza CEO Wolfgang Wienand stated that the expansion reflects the company’s conviction that the United States will remain a leading source of pharmaceutical innovation and a key market for its services. This type of capital deployment mirrors broader trends in domestic industrial capacity, similar to recent expansions by firms like Amkor in Arizona and various steel and defense manufacturers advancing multi-billion dollar projects across the country.
Key facts
- $235 million total capital investment in the Bend facility
- 80 high-wage manufacturing jobs expected upon completion
- 650 construction jobs anticipated during build-out
- Facility slated to open in 2029
- Includes two PSD-4 spray-drying units for SDD capacity
- $1.6 million provided by Business Oregon from the Strategic Reserve Fund
- Supports development of small molecules, biologics, and mRNA
- Final incentive terms currently under negotiation
Source: Lonza news release