Novartis is investing around 500 million euros in biopharmaceutical production in Austria, creating 350 new jobs in Tyrol

Vienna (OTS)

  • Novartis is investing around 500 million euros in the expansion of cell culture technology in Austria, thereby following the company’s strategy.
  • The investment strengthens the Tyrolean Kundl/Schachtenau campus as a leading biotech location in Europe and helps accelerate the continuous supply of biopharmaceuticals from Austria.
  • The Schaftenau facility is scheduled to be fully operational in summer 2024, while the Kundl facility will be operational in fall 2025, creating 350 new high-skilled jobs on campus.

In order to align the production network with the strategy and new technologies, Novartis announced planned investments with a focus on Austria. In order to strengthen Novartis’ production capacities with these highly innovative projects, two new cell culture plants are being built at the long-standing Tyrolean locations in Kundl and Schaftenau. 250 million euros will be invested in a facility in Kundl, which is scheduled to be completed by 2025 and will create 180 highly qualified jobs in the areas of production, quality and support. In Schaftenau, the already planned investment of around 250 million euros with 165 additional jobs in production, quality and supporting functions will be completed this summer.

“Innovative biopharmaceuticals open up new possibilities in medicine where classic medications and therapies reach their limits. They offer new therapeutic options for a variety of oncological, cardiovascular and immunological diseases. However, the complex biological active ingredients require a lot of experience and know-how to produce , and we are proud that we have been able to build up this knowledge over decades. Our Kundl and Schaftenau sites are among Novartis’ innovative production sites throughout Europe. As one of the leading Austrian pharmaceutical companies, we are very well positioned to further strengthen our production capacities and to continue to supply patients in Austria, Europe and around the world with innovative medicines ‘Made in Austria’“, said Steffen Lang, President Novartis Operations.

Karl Nehammer, Federal Chancellor: „I am pleased that the Austrian Federal Government’s InvestInAustria conference took place for the fourth time, because company relocations and international investments play a particularly important role for Austria as a business location. International companies contribute around 29 percent of Austria’s GDP every year and secure around 1.17 million jobs. As an innovative industrial and business location, Austria offers excellent conditions for entrepreneurial success in the heart of Europe. I am pleased that Novartis has recognized these ideal location factors and is investing 500 million euros in Austria by 2025 with two groundbreaking projects. On the one hand, this creates jobs and that helps on the other hand, it contributes to strengthening security of supply with biopharmaceuticals from Austria and helps to make Europe more independent of global supply chains.

Martin Kocher, Federal Ministry of Labor and Economic Affairs: As Minister of Labor and Economic Affairs, I am pleased that Novartis has chosen Austria as a location for its investment. This investment creates substantial regional employment and value creation effects. The pharmaceutical industry is one of the key domestic sectors. Investments in this area strengthen the resilience of our location. Affordable and available medicines in Europe are not only a question of health policy, but also require appropriate economic and competition policies. We therefore continually take measures to promote innovation. In this way, we are increasing Austria’s attractiveness for internationally operating companies.

Long tradition in biotechnology

Novartis has been producing biopharmaceuticals in Austria at the Competence Center for Cell Cultures in Schaftenau since 2004. With a cell cultivation volume of 1.8 million liters/year, this new investment creates a production facility with the highest output and ensures synergies with the existing facilities in the areas of production, quality, infrastructure and support services. It is currently in the qualification phase and will go into operation in summer 2024.

Building on existing know-how

The production area in Kundl, which went into operation in 1979, has unique biopharmaceutical production know-how within the Novartis network for the production of medicines that use microbial processes. In the future, monoclonal antibodies (mAbs), biospecific antibodies and other cell culture products will also be produced in a highly automated system. With up to 150 batches per year, the new system will significantly expand the existing production capacities based on microbial processes.

All production steps in the new, multifunctional cell culture facility are carried out by experienced personnel in a fully cGMP(1)-compliant environment. In line with the sustainability goals, an innovative production technology is being used on an industrial scale for the first time. Overall, the new cell culture system uses 40% less heat energy and 25% less electricity. The investments at Novartis Kundl are made in partnership with the Austrian government and the state of Tyrol and are supported by the Federal Ministry of Labor and Economic Affairs and the state of Tyrol with over 5 million euros.

Anton Mattle, Governor of Tyrol: Tyrol has been successfully positioning itself as an attractive location for life sciences for many years. Novartis is an important source of employment and inspiration for us in this area. A large proportion of Novartis’ supplies and orders remain in the region, which enormously strengthens domestic value creation. For the state of Tyrol, the investment of 500 million euros and 350 new, highly qualified jobs are a strong commitment to the local location. We do everything we can to support Novartis in further developing the Kundl and Schaftenau locations and ensuring sustainable production in Austria. Many thanks to Novartis for their commitment and all the best for the future!

We welcome the partnership with the Austrian Federal Government on this investment and will continue to focus on finding new ways to produce and deliver innovative treatments for patients, with a sustainable and energy-saving mindset“, emphasizes Steffen Lang.


About Novartis
Novartis is a company focused on innovative medicines. Every day we work to reimagine medicine to improve and extend people’s lives. This enables patients, healthcare professionals and society to better deal with serious illnesses. Our medicines reach more than 250 million people worldwide. Further information can be found online at www.novartis.com.

About Novartis Austria
We are rethinking medicine. As Novartis in Austria, we live our mission every day: to improve and extend people’s lives. With our location for innovative medicine in Vienna and the development and production centers in Kundl/Schachtenau in Tyrol, we are one of the leading and most innovative pharmaceutical companies in the country. Investments in research and development underpin our commitment to using science-based innovation to solve some of society’s most challenging healthcare problems. For more information, see http://www.novartis.at/ and follow us on LinkedIn: Novartis Austria

Photos and video material can be found at this link:
Novartis is investing around 500 million euros

More information About Novartis in Austria can be found here: Novartis company presentation

One Virtual Site Tour See here:
https://virtualtour-kundl.novartis.at/
https://virtualtour-schaftenau.novartis.at/

(1) Good manufacturing practice (current Good Manufacturing Practice, cGMP) contains specifications for ensuring the product quality of medicinal products and active ingredients.

Questions & Contact:

Maj. Sabine Boschetto
Country Communications & Engagement Head
Novartis Austria
+43 664 827 8610
sabine.boschetto@novartis.com

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