ELKTON VA: (Rocktown Now) – Merck, known globally as MSD outside the U.S. and Canada, has officially begun construction on a $3 billion, 400,000-square-foot pharmaceutical manufacturing facility in Elkton, Virginia. The new site will serve as Merck’s Center of Excellence for Pharmaceutical Ingredients and Small Molecule Manufacturing, bringing 500 new jobs to Rockingham County and marking a major expansion of the company’s long-standing presence in the Shenandoah Valley.

Governor Glenn Youngkin announced the project Monday, highlighting its significance for Virginia’s growing life sciences sector. “Merck’s transformational $3 billion commitment marks a giant leap forward for both America’s and Virginia’s life sciences sector,” Youngkin said. “With hundreds of new jobs and cutting-edge capabilities coming to the Shenandoah Valley, we’re building a future where Virginians lead the way in developing lifesaving medicines for patients around the world.”

The investment represents a substantial increase from Merck’s original plan of $2 billion and 300 jobs. It is part of the company’s broader $70 billion commitment to domestic research, development, and capital projects aimed at strengthening U.S. pharmaceutical manufacturing.

Merck Chairman and CEO Robert M. Davis called the announcement “an important milestone for Merck, for Virginia, for manufacturing in the United States and, most importantly, for the patients we serve.”

The new Center of Excellence will complement Merck’s existing operations in Elkton, where the company has maintained a presence for nearly 85 years. The facility will feature state-of-the-art capabilities for active pharmaceutical ingredient production and small-molecule drug manufacturing and testing.

Virginia Secretary of Commerce and Trade Juan Pablo Segura praised the move as a “transformational investment” that reinforces the Commonwealth’s position as a global leader in pharmaceutical innovation. Local leaders echoed the sentiment, with Rockingham County Board of Supervisors Chairman Joel Hensley calling it “a proud and momentous occasion.”

To support the expansion, the Virginia Economic Development Partnership collaborated with Rockingham County and the Shenandoah Valley Partnership. Governor Youngkin approved a $5 million Virginia Investment Performance grant and a $4 million Commonwealth’s Opportunity Fund grant to assist with the project.

Merck’s workforce development will be supported by the Virginia Talent Accelerator Program, which has been ranked the No. 1 customized workforce training program in the U.S. for three consecutive years. The program will provide tailored training aligned with international best practices at no cost to the company.

Senator Mark Obenshain and Delegate Tony Wilt both hailed the expansion as a transformative boost to the local economy, underscoring Merck’s continued commitment to the region.