Samsung Biologics to build fifth plant in Songdo

Samsung Biologics will invest 1.98 trillion won ($1.51 billion) to build its fifth plant in Songdo, Incheon, further expanding its production capacity in contract manufacturing of biopharmaceutical products.

A rendering of Samsung Biologics' Bio Campus II in Songdo, Incheon [SAMSUNG BIOLOGICS]

Samsung Biologics will invest 1.98 trillion won ($1.51 billion) to build its fifth plant in Songdo, Incheon, further expanding its production capacity in contract manufacturing of biopharmaceutical products.

The board of Samsung Biologics approved the investment Friday, the drugmaker announced the same day.

Plant 5 will sit on a 96,000-square meters (1.03 million square feet) site in Bio Campus II, its new manufacturing complex in Songdo, Incheon. Samsung Biologics purchased a land plot of 357,000 square meters to build the second complex last July.

The fifth plant will break ground this year, with the complete construction slated for September 2025.

Once the new factory, which will hold a 180,000-liter production capacity, begins operation, Samsung Biologics said it will boast the largest combined production capacity among global biomedicine consignment manufacturers at 784,000 liters.

The expansion aims to capitalize on the steady growth in demand for medical treatments especially after the pandemic.

“Amid the steady global demands for biopharmaceuticals, outsourcing of biomedical products is on the rise since the Covid-19 outbreak,” Samsung Biologics’ Chief Executive Officer John Rim said. “Preemptive investment is needed in order to continue our leadership in the market after the fourth plant.”

Meanwhile, Samsung Biologics' shareholders voted at their general meeting on Friday to approve the reappointment of Rim as CEO of the biotech company.

“We will continue to expand our production capacity by promoting the construction of Bio Campus II,” Rim told the shareholders, pledging that the company will invest a total of 7.5 trillion won in the second complex to build large-scale biomedical production facilities as well as research facilities for fostering next-generation drug technologies.

The CEO also vowed to bolster its standing in contract development of drugs, a business segment that requires more sophisticated research and higher funding compared to contract manufacturing.

Rim continued, “We will respond quickly to changing market trends by expanding our business portfolio to next-generation medicines such as antibody drug conjugate and gene therapy,” adding, “While strengthening contract development organization competitiveness through our own technology development, we will invest in innovative companies with excellent technology through the Life Science Fund and seek ways to develop synergy.”

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]