Merck $900M project approved by Delaware Council

Merk representatives meet with Delaware council for 30m grant approval. (Luis Ducharne, CMO at Merck; Tim Keppell, Merckk Executive Director of Manufacturing Network Strategy; Kurt Foreman, President and CEO of the DPP) (Photo by Claudia Estrada)

WILMINGTON-  The Council for Development Finance convened to review and approve key funding motions aimed at pharmaceutical giant Merck, to establish their new facility in Wilmington. 

In a meeting on Monday, Merck Sharp & Dohme LLC proposed a substantial $900 million biologics manufacturing facility in Wilmington. The company seeks $4.7 million in job performance grants and $25.5 million in capital expenditure grants.

“As a reminder, these are performance grants and are dispersed after the company creates the new jobs and invests in the facilities,” said Kurt Foreman, President and CEO of the Delaware Prosperity Partnership (DPP).

This project is expected to create 375 jobs and will begin construction this year, with plans to be fully operational by 2030.

“Sounds like a long time away, but it takes years to build, fit out, and test these highly sophisticated facilities,” Foreman said.

Merck is considering developing the manufacturing facility at the Chestnut Run Innovation & Science Park also known as CRISP, located in unincorporated Wilmington. 

“DPP is focused on the life sciences as one of its key focus areas since our inception, and Delaware has a prominent history in the sector which this project would build on and expand.”

He points out Delaware’s long history of investments in Delaware’s Life science sector.

“This is a competitive project and could be a game changer for Delaware and bring new jobs and investment”. The company would offer career opportunities for Delawareans and contribute heavily to the state and county tax bases. Winning this project for Delaware would distinguish our state further as an ideal location for Life Sciences and innovation.” 

Founded in 1891, Merck is an American-based company that uses cutting-edge technology to develop vaccines, pharmaceuticals, and biological therapies to help humans and animals improve and sustain their lives.

Merck’s headquarters currently reside in Rahway, New Jersey. Their manufacturing team looks to partner with external manufacturers to manufacture products, expand internal manufacturing networks, and build new sites. 

Merck has invested in designing a new manufacturing facility that’s 450,000 square feet with multiple buildings for lab, laboratory operations, production, and warehousing, with the estimated cost exceeding $900 million. 

To run the facility in its current state, Merck would be creating 375 new jobs that span from lab operations to facility management.

“ But all the jobs, what they do have in common, they all come with family-sustaining, salaries and benefits and that’s what’s most exciting about the project for us, and why we looked for siting locations that had access to talent, and especially in biologics,” said Tim Keppel, Merck’s Executive Director of Manufacturing Network Strategy.

“And so that’s one of the reasons why we had been focused on Delaware and the growing biologics talent pool–we think that we could also enhance if we were to select Delaware. So we’re excited about this opportunity.” 

When asked what Merck’s commitment was to using Delaware’s workforce for this project, Keppel confirmed Merck’s preferences to utilize Delaware-based contracting and tradespeople to perform work for this site.

“We have relationships with existing architectural engineering firms, the ones that are already been working on design, but also on the construction management side, that already know our policy, building standards, and so on,” he said. 

While Delaware is a strong contender, Merck is still evaluating other locations and finalizing key aspects before making a final decision.

“We do not have a signed lease–but we are in the final stages of making that decision,” Keppel said.

Once a lease or purchase agreement is signed, construction and hiring will commence immediately. Keppel said that the decision is time-sensitive and that construction would begin immediately after approval.

Merck’s application was motioned for approval by the council. 

Claudia Estrada

Claudia is a Philadelphia-based journalist and reporter passionate about storytelling that informs and engages the community. Claudia, a proud Temple University graduate, has built a career covering impactful stories and creating compelling content across digital and print media platforms. With a strong background in writing, editing, and research, Claudia has worked on various topics, from local news to in-depth features, always striving to deliver meaningful and accurate reporting.