Sweden’s Recipharm will produce doses of Moderna’s COVID-19 vaccine candidate in central France, the company said on Wednesday, adding it had started recruiting and investing to begin manufacturing.

Recipharm, a contract development and manufacturing organization (CDMO) that has four plants in France, said it had signed a letter of intent with the U.S. company and that it was expecting a final agreement to be reached next month.

The doses would be produced at Recipharm’s facility in Monts.
Financial details were not disclosed.

The European Union struck a deal on Tuesday for up to 160 million doses of Moderna’s vaccine candidate, taking the bloc’s potential stock of COVID-19 shots to nearly 2 billion.