Roche lays the foundation for the diagnostics production of the future in Germany

Representation of the new Roche Diagnostics production center in Penzberg: With over 600 million euros, the largest individual investment by Roche in Germany, a groundbreaking facility for the production of diagnostic reagents is being built here. (Image rights: Roche)

Aerial view of the construction site for one of Europe's most modern production centers: Roche in Penzberg is laying the foundation for one of the most modern production centers for high-quality diagnostic reagents. (Image rights: Roche)

Foundation stone laid in the presence of Federal Chancellor Olaf Scholz and Bavaria's Minister President Dr. Markus Söder at the Roche Biotechnology Center in Penzberg near Munich
— Investment of more than 600 million euros in a high-tech production center for diagnostics – the largest individual investment by Roche in Germany
— Expansion of manufacturing capacities for a variety of diagnostic tests to ensure global patient care and sustainably promote medical services in Germany

Roche is laying the foundation for one of the most modern production centers for high-quality diagnostic reagents in Europe at its biotechnology campus in Upper Bavaria. The company is investing more than 600 million euros – the largest single investment by Roche in Germany. In the future, more than 450 essential reagents for diagnostic tests will be produced here in a highly automated and intelligent manufacturing process to supply patients worldwide. With the new building, Roche is strengthening the production site in Germany, increasing long-term supply security for in-vitro diagnostics globally, and enhancing the resilience of value chains in Europe.

The ceremonial laying of the foundation stone took place in the presence of Federal Chancellor Olaf Scholz and Bavaria's Minister President Dr. Markus Söder.

Federal Chancellor Olaf Scholz: "Roche's investments here in Penzberg and at other German sites send an important signal for the modernization and attractiveness of Germany's pharmaceutical and industrial location. Pharma, biotech, and pharmaceutical diagnostics are of great importance for healthcare in Germany. At the same time, this benefits value creation and employment and demonstrates our high level of innovation. A year ago, the federal government adopted the pharmaceutical strategy to further improve the health, research, and economic policy framework for the pharmaceutical sector. With the Medical Research Act, we have now quickly implemented key parts of the pharmaceutical strategy. It is paying off."

Minister President Dr. Markus Söder: "We are celebrating a new level of top-tier medicine – 'Made in Bavaria'. Penzberg has now firmly established itself among the most modern diagnostic centers worldwide. This is a strong commitment to the economic location of Bavaria. With over 7,700 jobs on site, the biotech company has immense significance for the Weilheim-Schongau district, the region, and the entire Free State. We want to continue this success story and will continue to support it closely as partners in science and research. To this end, the Free State is providing 40 million euros for a new external branch of the Fraunhofer Institute. Especially in a world with increasing uncertainty, it is important to keep key industries domestic. Domestic production not only creates jobs but also security and independence." With the groundbreaking, Roche reaches an important milestone in the new building: construction is expected to be completed by 2027, followed by testing and qualification phases. Production is expected to begin in 2028.

Investments in the German economic location

Roche is consistently investing in its German sites. Over the past five years (2019 to 2023), more than three billion euros have been invested in the sites in Penzberg, Mannheim, Grenzach, and Ludwigsburg, including around 1.3 billion euros in the Upper Bavarian region. The total volume of all investment projects Roche has implemented or initiated in Germany in 2023 amounts to more than 1.4 billion euros. Industry-friendly political conditions are crucial to specifically promote investments and innovations in Germany. Roche and companies in the industrial healthcare sector are therefore committed to further developing health policy frameworks and the pharmaceutical strategy together with the federal government and expanding into diagnostics, medical technology, and digital industry – beyond the current legislative period. The goal is to enable as many patients as possible to access innovative medicines, diagnostics, medical devices, and digital solutions while laying the groundwork for new economic growth.

Focus on digitization and innovation

In 2023, around 29 billion diagnostic tests were delivered worldwide using Roche analysis systems. Diagnostic tests include a variety of components called reagents. These include, among others, antibodies, enzymes, and nucleotides. About 80 percent of the required diagnostic reagents come from the Roche campus in Penzberg. This encompasses a total of around 1,900 different reagents. In the new Roche production center, approximately 450 different reagents will be produced for a variety of diagnostic tests, enabling rapid and reliable diagnosis in infectious diseases, neurology, cardiology, oncology, and diabetes.

The new diagnostics manufacturing building will be one of the most modern of its kind in Europe. Roche is committed to digitization and automation of manufacturing processes for faster and more efficient production. Additionally, Roche designs the manufacturing process using "multipurpose equipment" to be highly flexible. The production systems are designed to be used for the manufacture of different reagents as needed. This allows Roche to produce diagnostic reagents in the future without retooling existing systems, whether they are still in development or entirely new. This enables faster production of new product generations and their deployment for patient care.

Collaboration under a new state-of-the-art roof

During the construction phase of the new high-tech building, approximately 41,800 tons of concrete will be processed and 4,150 tons of steel used – equivalent to the amount of about 200 single-family homes. Additionally, 150 kilometers of piping and 800 kilometers of cabling will be installed. This results in a high-tech manufacturing building with a gross floor area of more than 23,000 square meters, as large as three football fields. The 73-meter-long, 41-meter-wide, and 37-meter-high new building includes two underground levels, five full stories, and a technical center on the roof. Over 1,000 photovoltaic panels will be installed on the roof and on the east facade, with the energy generated being used in manufacturing. Additionally, a biomass heating plant for forest residual wood combustion will be built nearby to supply the new building with sustainably generated energy. Roche is investing an additional 22 million euros for this. With the heating plant, the Penzberg site will save around 7,800 tons of CO₂ annually starting in 2025, accounting for about 18 percent of the site's greenhouse gas emissions. Using CO₂-reduced cement during construction can additionally save around 3,000 tons of CO₂. The company aims to reduce CO₂ emissions by half by 2029.

From 2028, around 200 employees in diagnostics production will work under the roof of the new building. Currently, they work spread across various buildings at the site. Closer collaboration within a single building will further improve communication and cooperation.

Investment in the Bavarian economic location

With its 600-million-euro investment in Penzberg, Roche sends a strong signal for Germany's and Bavaria's competitiveness in the diagnostics industry. The site already plays a central role as a global center for the production of diagnostic reagents, contributing significantly to worldwide healthcare. It is a key pillar in Roche's global production network and a global "Center of Excellence" for diagnostic test production with over 50 years of biotechnology experience. Additionally, Roche covers the entire value chain of diagnostics at this site: from research and development to manufacturing diagnostics. As of December 31, 2023, around 7,730 employees worked at the site, including 309 apprentices and students.

Its proximity to Munich and the research institutes and universities located there provides the Penzberg Roche campus with excellent access to scientific talent and skilled workers. The company is also an active part of the Greater Munich Life-Science Region. The site benefits from close networking between academic research and the biotech industry. Roche also collaborates closely with the Bavarian state government, the Weilheim-Schongau district, and the city of Penzberg to continue working towards ideal conditions for the industrial healthcare sector at the location.