EU greenlights €400 million in aid for Sanofi insulin plant in Germany

The European Commission has cleared €400 million in German state aid for Sanofi to build a new insulin factory in Frankfurt, securing Europe's only human insulin production site.

The European Commission, which scrutinizes state aid such as this to prevent distortions of competition, announced on Tuesday that the company could be compensated for its net costs. 

In return, Sanofi-Aventis Deutschland GmbH has committed to building a new insulin factory at its site in the Frankfurt district of Höchst by the end of 2032, the commission said.

By the end of 2042, at least 1.1 tons of insulin are to be produced there annually. 

The pharmaceutical manufacturer must also stockpile 1 ton of pharmaceutical insulin active ingredients and, in the event of an insulin supply shortage, give priority to supplying European markets.

The EU executive added that Sanofi would have been forced to close its German site without the funding. 

The facility is the only production site for human insulin in the European Economic Area. Its closure would have left Europe dependent on imports from third countries, it said.

Sanofi's investment is being supported by the German federal government, the state of Hesse and the city of Frankfurt. The approval from Brussels was the final hurdle.

According to the company, around 6,500 people are employed at the Frankfurt site.

Human insulin is used to treat diabetes mellitus, a condition that causes elevated blood sugar levels. Insulin enables glucose to be absorbed from the bloodstream into the body's cells.