Novo Nordisk announced that it plans to build a new factory in Køge, Denmark, to support the production of raw materials.

The company’s Pharmatech business said it decided to build the factory in response to higher demand for raw materials for the production of medicines to fight chronic diseases.

Novo Nordisk Pharmatech bought the 47,000-square-meter site in Køge with plans to expand its current production. Now, it plans to invest 1.5 billion Danish kroner (about $223 million) in an 8,000-square meter facility containing production, storage, office and laboratory space at this iste. It expects to have the facility ready for production in 2027.

According to a news release, the company expects the factory to create around 50 new jobs. It also has significant sustainability elements, reducing Novo Nordisk Pharmatech’s CO2 footprint by around 60%. The company plans to install solar panels in the parking lot, too.

The area allows for expansions to support the company’s future strategy of launching new pharmaceutical and biopharmaceutical products.

“This is the largest investment in Novo Nordisk Pharmatech’s 75-year history. We are in a period of growth. In accordance with our growth strategy, we are expanding our production to ensure an even more robust and reliable delivery of our products. The location in Køge is ideal, as we can draw on the extensive know-how we have at our current factory – and furthermore, the infrastructure is optimal, with Køge Nord station so close to our new site,” said Ulla Grove Krogsgaard Thomsen, CEO Novo Nordisk Pharmatech A/S.