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Samsung Biologics To Invest USD 1.45B To Build New Manufacturing Plant

Asia Manufacturing Review Team | Friday, 17 March 2023

 Asia Manufacturing Review Team

On Friday, Samsung Biologics announced that it will invest 1.9 trillion won ($1.45 billion) in Plant 5, its fifth biopharmaceutical contract manufacturing organisation (CMO) plant in Songdo, Incheon.

Plant 5 will be the first plant in Bio Campus 2 and will be built to produce approximately 180,000 litres of biopharmaceuticals, which is comparable to the scale of Campus 1's third plant.

Plant 5 will begin construction this year and be completed by September 2025, according to the company.

While Samsung Biologics spent approximately 85 billion won on the third plant, it will spend more on the fifth plant because it will be built on a new site, which will necessitate additional infrastructure costs.

In the meantime, Samsung Biologics held a shareholder meeting on Friday.

Samsung Biologics CEO John Rim stated at the shareholders' meeting that the company will accelerate its three mid- to long-term expansion strategies – production capacity, business portfolio, and geographic base – that it first announced at the 2023 J.P. Morgan Healthcare Conference earlier this year.

"Samsung Biologics posted strong growth even in the global economic downturn," Rim said. "Despite the poor economic outlook for this year, we will continue to grow strongly."

Rim added that the company will increase production capacity by successfully completing Plant 4 and constructing Bio Campus 2 in Songdo, Incheon.

Rim emphasised that the company intends to invest 7.5 trillion won in Bio Campus 2, including 1.9 trillion won in Plant 5, in order to construct research facilities that will foster next-generation pharmaceutical technologies.

"We will also broaden our portfolio with next-generation medicines like ADCs and gene therapy drugs to respond quickly to changing market trends and strengthen the competitiveness of our contract development organisation (CDO) capabilities," Rim said. "We will also set up more bases in overseas regions to improve customer satisfaction."

Rim added that Samsung Biologics will continue to strive to become a top-tier global bio company.