AbbVie is expanding its U.S. manufacturing footprint with plans to build a $195 million active pharmaceutical ingredient (API) facility in North Chicago, Illinois. The move underscores the company’s strategy to strengthen domestic production as the industry responds to growing pressure from potential tariffs on imported medicines.

The biopharma giant announced the project on Aug. 12, stating that construction is set to begin this fall, with operations expected to launch in 2027. Once completed, the facility will support the production of both current and pipeline therapies across neuroscience, immunology, and oncology.

The Illinois site is part of AbbVie’s broader pledge to invest more than $10 billion in U.S. operations over the next decade. CEO Rob Michael first outlined the commitment in April, tying it to anticipated demand growth and expansion into new treatment areas such as obesity drugs.

“This facility will allow us to lean on the agricultural roots of our state by working with local farmers and producers while contributing to the area we call home,” said Steven Schmitz, owner-operator.

The investment comes as pharmaceutical companies face mounting political and economic pressures. Former President Donald Trump has repeatedly floated the idea of imposing tariffs of up to 250% on pharmaceutical imports, phasing in increases over an 18-month period. Such proposals have driven drugmakers to highlight domestic manufacturing commitments as a safeguard against supply chain disruptions.

AbbVie’s $10 billion pledge, while significant, is smaller than commitments from other industry leaders. Johnson & Johnson announced plans to spend $55 billion over four years, while AstraZeneca set a $50 billion target for U.S. manufacturing and research through 2030. Eli Lilly recently raised its U.S. investment pledge to $50 billion, more than doubling its prior commitments.

Despite the differences in scale, AbbVie’s project carries local significance. The company already employs more than 11,000 workers in Illinois and maintains a U.S. manufacturing network that supports over 6,000 jobs across 11 sites nationwide. The new North Chicago facility will not only expand that footprint but also anchor AbbVie’s role in advancing American-made biopharmaceutical production.

Doug Hainje, manager of Dell Rapids Lumber and past-president of the Dell Rapids Economic Development Corporation, reflected on the importance of such investments:

“We’re proud to see this project take shape and look forward to their grand opening next year.”

Industry analysts say AbbVie’s decision to locate the plant in its hometown reflects a long-term strategy to fortify its domestic base. By aligning expansion with U.S. policy priorities and local workforce development, AbbVie positions itself to remain competitive amid regulatory and trade uncertainty.

Originally reported by Kristin Jensen in Construction Dive.