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AbbVie Breaks Ground on Illinois API Manufacturing Site
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Key Takeaways
- AbbVie is investing over $10 billion in U.S. manufacturing, focusing on immunology, oncology, and neuroscience medicines.
- The new North Chicago facility will shift some manufacturing from Europe and Asia to the U.S.
The news comes just days after President Trump’s announcement on 100%-pharma tariffs.
AbbVie's announcement comes just days after President Trump announced an exemption on pharma tariffs for companies that have broken ground on a US-based manufacturing site.
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AbbVie officially began construction on its new active pharmaceutical ingredient (API) manufacturing plant in North Chicago, Illinois.1 As the project officially gets underway, AbbVie is projecting that it will be fully operational by 2027. The facility will focus on manufacturing ingredients for immunology, oncology, and neuroscience medicines.
How much does AbbVie plan to invest in domestic manufacturing?
In a press release, AbbVie executive vice president and chief operations officer Azita Saleki-Gerhardt, PhD, said, “Today's groundbreaking is an important milestone in AbbVie's ongoing campaign to accelerate biopharmaceutical innovation and manufacturing capabilities in the U.S. Over the next decade, AbbVie plans to invest more than $10 billion in capital to add multiple new U.S. manufacturing plants and improve the lives of millions of patients in the U.S. and worldwide who depend on our medicines."
The press release also affirms that this move is part of AbbVie’s commitment to expand its US-based manufacturing presence. The new facility will allow the company to move some of its manufacturing capabilities from Europe and Asia to the United States.
The company originally announced plans for the manufacturing site in August of this year.2 At the time, AbbVie issued a statement announcing its intention to invest $195 million in a new facility at the North Chicago site.
In a press release issued at the time, AbbVie’s chairman and chief executive officer Robert A. Michael said, “Over the next decade, AbbVie will expand production of API, drug product, peptides and medical devices in the U.S. to support future medical breakthroughs. This is an important step to maintain U.S. leadership in pharmaceutical innovation and deliver next-generation medicines that make a remarkable impact on patients' lives."
Illinois governor JB Pritzker added, “AbbVie's decision to expand its manufacturing footprint in Illinois is a testament to our state's world-class workforce, infrastructure, cutting-edge research institutions, and location that keeps businesses connected to the nation and the world. As a global leader in pharmaceuticals, AbbVie's investment in Illinois bolsters our world-class biomanufacturing ecosystem and creates jobs while it innovates next generation medicines."
At the time of the announcement, AbbVie stated that it planned on beginning construction in fall of 2025. While this project was in already in the works, the timing of the project’s beginning is fortunate for AbbVie.
Late last week, President Trump announced plans to implement 100% tariffs on branded and patented drugs imported to the US starting October 2025. However, he provided an exception for companies that had already begun construction or broken ground on US-based manufacturing facilities.
On Truth Social, President Trump wrote (this quote has been edited for grammar and style from its original source),1 “Starting October 1st, 2025, we will be imposing a 100% tariff on any branded or patented pharmaceutical product, unless a company is building their pharmaceutical manufacturing plant in America. “Is building” will be defined as breaking ground and/or under construction. There will, therefore, be no tariff on these pharmaceutical products if construction has started. Thank you for attention to this matter!”
It's unclear if the President’s announcement impacting the timeline of AbbVie’s project. Fall began on September 22, meaning that construction began within the originally stated timeline. However, the announcement also comes only a few days after the President’s announcement.
Sources
- AbbVie Breaks Ground on New North Chicago Active Pharmaceutical Ingredient Manufacturing Facility. AbbVie. September 29, 2025. https://www.prnewswire.com/news-releases/abbvie-breaks-ground-on-new-north-chicago-active-pharmaceutical-ingredient-manufacturing-facility-302569711.html
- AbbVie Announces $195 Million Investment to Expand Active Pharmaceutical Ingredient Manufacturing in the U.S. AbbVie. August 12, 2025. Accessed September 29, 2025. https://www.prnewswire.com/news-releases/abbvie-announces-195-million-investment-to-expand-active-pharmaceutical-ingredient-manufacturing-in-the-us-302527811.html
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