- AGC Pharma Chemicals has invested €110 million to expand its factory in Malgrat de Mar, Barcelona, raising production capacity by 30%.
- The facility, which produces active pharmaceutical ingredients as part of the CDMO business model, remains a key supplier to Boehringer Ingelheim.
AGC Pharma Chemicals has inaugurated the €110 million expansion of its factory in Malgrat de Mar, Barcelona. The investment, which exceeded the initially announced €90 million, was completed one year later than scheduled. The company stated that the new facilities will allow it to increase production by 30%.
The Malgrat plant, located on the Catalan coast, manufactures active ingredients for third-party medicines under the contract manufacturing model. Originally built in the 1960s by Boehringer Ingelheim, the site was acquired by AGC in 2019 after Boehringer’s strategic decision to divest certain assets. The Japanese group announced plans for expansion in 2022, with cost increases linked to the war in Ukraine and global trade tensions.
“Behind every API we produce, there is a patient waiting for treatment, a family hoping for a cure, a life that can be improved.”
CEO Jun Kurihara
At the inauguration, the company underlined the strategic role of European manufacturing capacity. “The inauguration of this expansion is a milestone that marks a bold step toward the future,” said Daniel Marquardt, Vice President of Boehringer, at the event. AGC confirmed that Boehringer remains the main client of the Malgrat site, in line with wider industry outsourcing trends.
The expanded facility now covers 7,500 square metres, employs 360 people, and has added 80 qualified staff since AGC’s acquisition. Its R&D team has grown from seven to 39 employees. The site manufactures active ingredients used in cancer and rare disease treatments. Company representatives highlighted that the factory has been designed with an option to double its capacity if needed.
The expansion also incorporates sustainability measures, including solar panels across one wall of the plant and recycling systems for liquid waste from chemical processes. Officials from the Catalan government and the Japanese Consulate attended the opening ceremony, underscoring the cooperation between Catalonia and Japan in the pharmaceutical sector.
