(Yicai) Dec. 3 -- Sanofi will invest EUR1 billion (USD1.1 billion) to build a new insulin production plant in Beijing, the French pharmaceutical giant said, marking its largest single investment in China.

The plant will be Sanofi's fourth manufacturing base in China and the first facility for biological active pharmaceutical ingredients to be set up by a multinational drugmaker in the country, the Paris-based firm said yesterday. It will have state-of-the-art automated production, cutting-edge digital management systems, and follow sustainable environmental practices.

The factory will be built in the Beijing Economic-Technological Development Area and produce APIs for insulin products, supplying raw materials to Sanofi's existing insulin production line in the city, the company noted, citing a non-binding agreement it penned yesterday with the Beijing Municipal Bureau of Economy and Information Technology and the BETDA.

Sanofi Chairman Frédéric Oudéa expressed the company’s pleasure at announcing the investment this year, the 60th anniversary of China-France diplomatic relations. He added that China’s commitment to openness, innovation, and creating a favorable business environment for foreign companies gives Sanofi much confidence in contributing to its economic development.

The new Beijing plant will enhance Sanofi's supply chain resilience and help it meet the growing needs of local diabetes patients more effectively, Chief Executive Officer Paul Hudson noted.

China has one of the highest rates of diabetes in the world, with the chronic disease that causes high blood sugar levels affecting an estimated 100 million people in the country.

Sanofi set up its first insulin plant in Beijing in 1995 and it has become the firm’s main production site in the Asia-Pacific region for the hormone that helps regulate blood sugar levels. The company invested an additional EUR700 million (USD734 million) to expand its production lines in the city between 2020 and last year. 

Editor: Martin Kadiev