German pharmaceutical packaging supplier Gerresheimer has announced an investment of up to $94m to increase its manufacturing, supply and logistics capability for glass vials in the US.

As part of the expansion project, the company will add vial forming lines to its facility in Morganton, North Carolina.

These will include dimensional inspection, annealing, cosmetic inspection and packaging lines.

In addition, the company will develop a warehouse at the facility.

The project is backed by the US Biomedical Advanced Research and Development Authority (BARDA) through a 70/30 cost-share cooperative agreement.

The authority, which is part of the Office of the Assistant Secretary for Preparedness and Response (ASPR), has agreed to provide up to approximately $66m to Gerresheimer for the project.

Under the agreement, Gerresheimer will increase the Morganton facility’s annual production capacity by adding interchangeable Type 1 vial (glass borosilicate and/or aluminosilicate) and Gx Elite Glass Vial capabilities.

The vials will be used in vaccination campaigns against Covid-19 and other infectious diseases.

The investment is in line with Gerresheimer’s expansion strategy and follows its strategy process formula G.

It is also intended to strengthen the company’s position as an ‘elite’ vial provider and create job opportunities at the facility.

Gerresheimer CEO Dietmar Siemssen said: “Gerresheimer is honoured to support the US Government in strengthening its pharmaceutical supply chain for current and future healthcare emergencies.

“The agreement confirms our role as a supplier of system critical products, such as pharmaceutical primary packaging solutions and drug delivery systems for the healthcare sector.

“This investment follows our strategy process formula G and accelerates our growth in this important market.”

Based in Düsseldorf, Gerresheimer supplies packaging and products for the pharmaceutical and healthcare industries.

Last month, the company reported a 13% increase in organic revenue to €445m in the second quarter (Q2) of the fiscal year 2022 (FY22).