DHL Supply Chain, a U.S. unit of Deutsche Post DHL Group, said the group’s Life Sciences and Healthcare arm will spend $400 million this year to expand its pharmaceutical and medical device supply chain network.
The investment equates to a 27% expansion or nearly 3 million additional square feet. The growth includes six new U.S. sites expected to be operational by the end of 2022. The price tag covers new buildings, equipment and related technology.
When completed, DHL Supply Chain will have 34 sites across the U.S. including in Atlanta, Cincinnati, Memphis, Reno and Lebanon, Pennsylvania. The new facilities will have temperature-controlled storage to support pharmaceutical requirements.
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“This substantial expansion will only further deepen the connections between our customers and the patients they serve by providing best-in-class end-to-end supply chain solutions,” Jim Saponaro, president of the Life Sciences and Healthcare division, said in a statement.
The COVID-19 pandemic put a sharp focus on supply chain issues in the pharmaceutical industry over the past two years, particularly when it comes to storing and transporting vaccines to combat the virus.
Pfizer’s mRNA-based shot must be stored at negative 94 degrees Fahrenheit, and Moderna’s vaccine (also mRNA-based) calls for storage at negative 4 degrees Fahrenheit.