Houston Biotech Lands Eli Lilly Plant

Houston secures Eli Lilly’s $6.5B manufacturing plant at Generation Park through state and local incentives.
Project will create over 600 full-time jobs averaging $102,503 annually, plus 4,000 construction jobs.
The JETI Act agreement grants key tax breaks, including school tax exemptions through 2030.
Eli Lilly’s new plant will focus on making active pharmaceutical ingredients, including obesity drugs.

Key Takeaways

Major Incentives Seal the Deal

Eli Lilly has chosen Generation Park, the 4,300-acre industrial hub in northeast Houston, for a $6.5B pharmaceutical manufacturing plant. This development follows approval of a Jobs, Energy, Technology and Innovation (JETI) Act tax agreement by state and local officials, which secured generous incentives for the project.

Under the pact, Sheldon Independent School District will exempt the plant property from school taxes until 2030 and then cap the taxable value by half for ten years thereafter. The Real Deal reports that these terms, along with support from Governor Greg Abbott, proved central to landing the project.

Houston Biotech and Job Creation

This Houston biotech investment will add over 600 high-paying jobs averaging $102,503 per year, surpassing industry benchmarks. In addition, 4,000 construction jobs are expected during buildout. Eli Lilly’s new facility will manufacture ingredients for drugs like orforglipron, an oral GLP-1 for obesity treatment.

McCord Development, the site’s owner, will contribute $100M to infrastructure upgrades, with Eli Lilly funding the plant and operations. The development benefits from nearby San Jacinto College biotech programs, preparing local talent for future roles. The announcement comes as broader biotech activity shows signs of renewed momentum, signaling a more optimistic outlook across the sector.

Broader Life Sciences Momentum

The Houston biotech sector has grown to include more than 700 life science companies. While the city faces challenges with a smaller biotech labor pool, collaborations between schools and employers help build workforce capacity. Eli Lilly cited Houston’s workforce, available space, and favorable government partnerships as key factors in selecting the city over strong national competition.

What’s Next

While incentive documents list a September 2025 construction start, Eli Lilly has not committed to a firm timeline yet. The deal highlights Texas and Houston’s ongoing push to attract major US manufacturing and life sciences investments under new economic development policies.