October 25, 2022 – Abbott plans to build a $500 million infant formula facility and is boosting production at other plants as the company looks to increase supply in the U.S. amid ongoing shortages.
Robert Ford, the company’s chairman and CEO , told investors that the company was currently in the final stages of determining the site location and “will work with regulators and other experts to ensure this facility is state-of-the-art and sets a new standard for infant formula production.”
The decision to invest in a new plant comes in response to an analysis that found “this country would benefit from more manufacturing capacity and redundancy,” Ford said.
Many parents have faced persistent shortages of baby formula that started in February when Abbott temporarily closed its biggest plant in Sturgis, Michigan, and recalled several leading brands of formula, including Similac.