Sanofi SASY.PA could invest between 1.3 billion and 1.5 billion euros to modernize its insulin production site in Germany, a source familiar with the project told Reuters on Monday.
Such a deal would represent a further victory for Olaf Scholz’s coalition government, which is seeking to attract foreign investment, particularly in the pharmaceutical sector.
According to the German daily Handelsblatt, which was the first to report the potential investment project on Monday, Sanofi had initially considered transferring production of its Lantus insulin brand to France. According to the newspaper, which cites German government sources, the laboratory is now rather in favour of modernising its site located in Frankfurt, in the Höchst district.
Contacted, Sanofi said it would not comment on specific investment plans.
A German government spokesman said that Chancellor Olaf Scholz was “very impatient” to learn about further developments in the case, but that it was up to the company to communicate on the subject.
The coalition government is trying to boost its economic credibility ahead of a general election next year.
Europe’s largest economy is expected to return to growth of 0.3% to 0.4% this year after contracting 0.3% in 2023, the weakest performance among the richest eurozone countries.
(Report by Klaus Lauer in Berlin, written by Ludwig Burger; French version by Kate Entringer)