Merck Animal Health has announced a landmark $895 million investment to expand its manufacturing and research & development facilities in De Soto, Kansas. This significant commitment represents one of the largest economic development projects in Kansas' recent history and the largest ever for Merck Animal Health.
The expansion is being developed in partnership with the state of Kansas and demonstrates Merck's ongoing commitment to strengthening its presence in the U.S. market. The investment aims to enhance the company's capacity to deliver innovative health solutions for the prevention and treatment of animal diseases.
Strategic Investment in Domestic Manufacturing
Since the implementation of the 2017 Tax Cuts and Jobs Act, Merck has allocated more than $12 billion to enhance its domestic manufacturing and research capabilities. The company has further plans to invest an additional $9 billion by the end of 2028, highlighting its long-term commitment to U.S.-based operations.
"This extraordinary investment by Merck Animal Health underscores my administration's commitment to securing a strong economic future for our state and ensuring prosperity for generations to come," said Governor Laura Kelly. "Public-private partnerships that lead to major global projects, such as those with Merck, Fiserv and Panasonic – just to name a few recent successes – are occurring because people believe in Kansas."
The expansion is expected to create significant employment opportunities and stimulate economic growth throughout the region. The influx of capital will likely benefit local suppliers, contractors, and service providers, creating a multiplier effect across the Kansas economy.
Strengthening Kansas' Position in Animal Health
Lieutenant Governor and Secretary of Commerce David Toland emphasized the strategic importance of this investment for the state's economy and its position in the animal health sector.
"Merck's massive expansion in De Soto further elevates Kansas' long-established status as a global leader in animal health," Toland stated. "The opportunities and ripple effects of having almost $1 billion surge into the local economy will have far-reaching and long-lasting reverberations across the entire state. Historic investments such as these truly benefit all Kansans, both now and into the future."
The expansion builds upon Merck Animal Health's existing operations in Kansas, which form part of the company's global network spanning more than 50 countries, with products available in approximately 150 markets worldwide.
Advancing Animal Health Innovation
Merck Animal Health, a division of Merck & Co., Inc., is known for its commitment to "The Science of Healthier Animals®" and offers one of the industry's widest ranges of veterinary pharmaceuticals, vaccines, and health management solutions. The company serves veterinarians, farmers, producers, and pet owners with products ranging from pharmaceuticals to digital identification and monitoring technologies.
The expanded facilities in De Soto will enhance Merck's research and development capabilities, potentially accelerating the pace of innovation in animal health solutions. This investment reflects the growing importance of the animal health sector, which addresses critical needs in food security, zoonotic disease prevention, and companion animal care.
The company's comprehensive approach to animal health includes significant investments in R&D resources and a modern, global supply chain. By expanding its manufacturing capabilities in Kansas, Merck aims to strengthen its ability to meet growing global demand for animal health products while maintaining high quality standards.
This investment comes at a time when the animal health industry faces increasing challenges, including emerging diseases, antimicrobial resistance concerns, and growing demand for protein sources worldwide. Enhanced research and manufacturing capabilities will position Merck to address these challenges more effectively.
As the project moves forward, both Merck and Kansas officials express optimism about the long-term benefits of this partnership for the state's economy, the animal health industry, and ultimately, global animal and human health.
