French drug major Sanofi plans to invest around 1 billion euros or about $1.05 billion to build a new insulin manufacturing base in Beijing, China, reports said.
The move represents Sanofis single largest investment in China so far, where it has been present for more than 40 years. The investment will boost the manufacturing of insulin to help diabetic patients in the region and enhance the companys supply-chain resilience.
The new site, located in an economic development zone in Yizhuang, will be Sanofis second production base in Beijing and its fourth in the country.
Sanofi signed a memorandum of cooperation with the Beijing Municipal Bureau of Economy and Information Technology and the Beijing Economic-Technological Development Area or BDA Administrative Committee regarding the investment.
According to Sanofi Chief Executive Paul Hudson, the new production base will feature advanced automated production technologies, cutting-edge digital integrated management systems and sustainable environmental standards.
Medical journal the Lancet reportedly pointed that China now has the largest number of diabetes patients worldwide.