In a significant move set to bolster Kansas’s economy and reinforce its position in the global animal health industry, Merck Animal Health has announced an $895 million expansion of its De Soto manufacturing facility.
This initiative, unveiled on May 8, 2025, by Governor Laura Kelly and Merck executives, is poised to create over 200 full-time jobs and approximately 2,500 construction jobs, marking it as the second-largest private investment in the state’s history.
Investment Breakdown
The expansion encompasses two primary components:
- Manufacturing Facility Enhancement: An investment of $860 million will be directed towards expanding the existing manufacturing operations.
- Research and Development Laboratories: An additional $35 million will enhance Merck’s R&D capabilities, focusing on innovative solutions in animal health.
The project includes the construction of a 200,000-square-foot facility, aimed at increasing filling and freeze-dryer capacity for large-molecule vaccines and biologic products.
This expansion is integral to Merck’s strategy to meet the growing demand for animal health products.
Economic and Community Impact
The expansion is expected to have a profound impact on the local economy:
- Job Creation: Beyond the 200 new full-time positions, the construction phase will generate approximately 2,500 jobs, providing a significant boost to the local labor market.
- Tax Incentives: While the specific tax incentive package is yet to be finalized, previous agreements have included an 80% property tax abatement for 10 years and potential construction sales tax exemptions.
- Community Development: De Soto Mayor Rick Walker emphasized the project’s minimal strain on local infrastructure, highlighting the city’s readiness to support such large-scale developments.
Strategic Location: The Animal Health Corridor
De Soto’s location within the KC Animal Health Corridor—spanning from Manhattan, Kansas, to Columbia, Missouri—positions it at the heart of a region housing over 300 animal health companies.
This corridor accounts for 56% of global animal health, diagnostics, and pet food sales, making it an ideal hub for Merck’s expanded operations.
Merck’s Commitment to Innovation
Since the 2017 Tax Cuts and Jobs Act, Merck has allocated over $12 billion to enhance domestic manufacturing and research capabilities, with plans to invest an additional $9 billion by the end of 2028.
The De Soto expansion aligns with this commitment, aiming to advance the company’s research in parasiticides and therapeutics, and reinforce its leadership in the animal health sector.
Project Timeline
The project’s key milestones include:
- Immediate Commencement: Site preparation and facility design are set to begin immediately.
- Construction Phase: The construction phase will employ approximately 2,500 workers.
- Operational Launch: Commercial manufacturing operations are expected to commence in 2030, marking the project’s completion.
| Aspect | Details |
|---|---|
| Total Investment | $895 million |
| Manufacturing Investment | $860 million |
| R&D Investment | $35 million |
| Facility Size | 200,000 square feet |
| New Full-Time Jobs | Over 200 |
| Construction Jobs | Approximately 2,500 |
| Project Start | Immediate (May 2025) |
| Operational Launch | Expected in 2030 |
| Tax Incentives | Pending finalization; previous agreements included 80% property tax abatement for 10 years |
| Location | De Soto, Kansas, within the KC Animal Health Corridor |
Merck’s substantial investment in De Soto underscores its dedication to advancing animal health and its confidence in Kansas’s strategic position within the industry.
This expansion not only promises economic growth and job creation but also solidifies Kansas’s status as a global leader in animal health innovation.