Merck To Invest $3 Billion In Elkton Expansion, Adding Up To 500 Jobs In Shenandoah Valley

By Markus Schmidt, Virginia Mercury

October 20, 2025

Pharmaceutical giant Merck & Co. is breaking ground on a $3 billion expansion of its longtime Elkton manufacturing campus, a project state and federal officials say will transform the Shenandoah Valley into a hub for life sciences innovation while adding as many as 500 permanent jobs.

The 400,000-square-foot facility will serve as Merck’s Center of Excellence for Pharmaceutical.

Ingredients and Small Molecule Manufacturing, marking a significant increase from the company’s earlier $2 billion commitment and 300-job projection. Construction is expected to begin this year and finish by 2029.

Company officials said the new site, which builds on nearly 85 years of Merck’s presence in Rockingham County, will enhance the production of small-molecule medicines and active pharmaceutical ingredients (APIs), adding cutting-edge testing and manufacturing capabilities.

“This investment will help advance our goal of providing new, innovative treatment options for people facing serious health challenges in the U.S. and around the world,” said Merck Chairman and CEO Robert Davis, calling the expansion a milestone “for Merck, for Virginia, for manufacturing in the United States and, most importantly, for the patients we serve.”

State officials tout ‘transformational’ investment

Virginia leaders hailed the project as one of the largest single corporate investments in the state’s recent history.

“Merck’s transformational $3 billion commitment to locate its Center of Excellence marks a giant leap forward for both America’s and Virginia’s life sciences sector,” said Gov. Glenn Youngkin, who called the project evidence of Virginia’s growing reputation as a leader in biopharmaceutical manufacturing.

Commerce and Trade Secretary Juan Pablo Segura said the project underscores the state’s “rapidly expanding biopharmaceutical sector,” crediting Virginia’s workforce and business-friendly policies for attracting large-scale investments.

Local officials called the expansion a turning point for the Valley’s economy.

“This announcement by Merck marks a momentous occasion for Rockingham County and the Shenandoah Valley,” said Shenandoah Valley Partnership Executive Director Jay Langston, adding that the project “positions the Valley at the forefront of a new class of pharmaceutical innovation.”

Rockingham County Board of Supervisors Chairman Joel Hensley said the expansion will “bring valuable jobs” and represents years of collaboration among local, state and company officials.

Incentives and workforce training

The Virginia Economic Development Partnership (VEDP) worked with Rockingham County and the Shenandoah Valley Partnership to secure the deal. The state will provide a $5 million performance-based grant from the Virginia Investment Performance program and a $4 million grant from the Commonwealth’s Opportunity Fund to support site development.

Merck will also benefit from the Virginia Talent Accelerator Program, which offers customized workforce recruitment and training services at no cost to qualified employers. The program, ranked as the nation’s top customized workforce training initiative by Business Facilities for three consecutive years, aligns with community colleges and universities to train workers to international standards.

“The expansion provides for more job opportunities and will further strengthen our local economy,” said Sen. Mark Obenshain, R-Harrisonburg. “Merck’s continued commitment to our community underscores the strength of our workforce.”

Del. Tony Wilt, R-Harrisonburg, called the project “truly transformative,” adding that Merck “has been a trusted partner to Rockingham County for many years, providing good-paying jobs and supporting our local economy.”

Warner and Kaine praise expansion’s impact

U.S. Sens. Mark Warner and Tim Kaine, both Democrats representing Virginia on Capitol Hill, also welcomed Merck’s investment and said it reflects the company’s long-term confidence in Virginia’s workforce and life sciences potential.

Warner noted that the company’s plan to bring most of its global small-molecule production to Elkton will “strengthen America’s pharmaceutical manufacturing capacity” and “reaffirm Virginia’s leadership in the life sciences sector.”

Warner also praised Merck for continuing to produce vaccines in Elkton, including its cancer-preventing Gardasil shot, at a time when “political attacks and misinformation are undermining trust in medicine and public health.”

Kaine, who helped expand Merck’s Elkton site during his term as governor, called the new investment “welcome news for Virginia’s economy.”

The senator also reflected on his role in including the Gardasil vaccine in Virginia’s immunization requirements during his tenure as governor, making the commonwealth the first state to do so.

“Particularly as the Trump Administration sows doubt about the effectiveness of vaccines,” Kaine said, “it couldn’t be more important that we recognize and celebrate the impressive progress that Virginians and Merck have shared with the world.”

Warner and Kaine have both been involved in the facility’s growth over the past two decades.

As governor, Warner secured a $40 million investment from Merck to prepare the Elkton site for vaccine production, and Kaine later helped secure another $57 million to expand its Gardasil operations.

In recent years, the senators have also pushed for greater federal investment in Virginia’s biotechnology research and manufacturing sector.

In 2021, they helped secure more than $52 million under the American Rescue Plan for the Advanced Pharmaceutical Manufacturing cluster in Petersburg. Two years later, the Petersburg cluster was designated a Tech Hub under the CHIPS and Science Act, legislation Warner championed in Congress.

Strengthening Virginia’s life sciences economy

Merck’s $3 billion project builds on the company’s nearly century-long presence in the Shenandoah Valley, where it has maintained major vaccine and drug manufacturing operations.

Local officials said the scale of the project will create ripple effects across the Valley economy — from construction jobs to workforce training partnerships.

“This investment not only strengthens the regional economy through new jobs and capital investment but also positions the Valley at the forefront of a new class of pharmaceutical innovation,” said Langston of the Shenandoah Valley Partnership.

This story was originally published by the Virginia Mercury. For more stories from the Virginia Mercury, visit Virginia Mercury.com.