Baek Byung-yeul is a journalist at The Korea Times focused on cultural content, including films and cultural events in South Korea. You can contact him at baekby@koreatimes.co.kr to share your insights.
Samsung chief vows to invest $5.2 bil. to create huge lead for bio business
Lee Jae-yong, center, vice chairman of Samsung Electronics and leader of Samsung Group, and Samsung Biologics CEO John Rim, third from left, pose with other officials for a photo during a ceremony marking the completion of construction on Samsung Biologics' fourth drug manufacturing plant in Songdo, Incheon, Tuesday. Courtesy of Samsung Electronics
By Baek Byung-yeul
Samsung Biologics completes construction of 4th plant in Songdo
By Baek Byung-yeul
Samsung Electronics Vice Chairman Lee Jae-yong has vowed to invest 7.5 trillion won ($5.2 billion) in the company's biotechnology firm by 2032 to achieve a huge lead with its competitors, Samsung Group said Tuesday.
The Samsung chief attended the ceremony for the completion of Samsung Biologics' fourth drug manufacturing plant in Songdo, Incheon. The plant, which went into operation this month, is the world's largest biopharmaceutical production plant, with an annual production capacity of 240,000 liters. Samsung invested about 2 trillion won in its construction.
The visit was Lee's first in seven years to Samsung Biologics' Songdo Bio Campus since he attended the groundbreaking ceremony for its third plant in 2015.
During his latest visit, Lee met with the management of Samsung Biologics and Samsung Bioepis, a biosimilar maker, and discussed their medium- and long-term business strategies.
With the start of operations at the fourth plant, Samsung Biologics now has a total production capacity of 424,000 liters, becoming the world's leading contract development and manufacturing organization (CDMO) business, developing and manufacturing drugs for client firms.
Samsung Biologics has achieved that milestone in only 10 years since its establishment in 2011 and currently produces the drugs of 12 of the top 20 global pharmaceutical companies.
“In 2023, when the fourth plant, which has started partial operations, will be operating normally, Samsung Biologics' production capacity will be expanded to 604,000 liters and the company is expected to solidify its super gap advantage in the global bio CDMO market,” Samsung Group said.
Lee Jae-yong, second from left, vice chairman of Samsung Electronics and de facto leader of Samsung Group, inspects Samsung Biologics' fourth plant in Songdo, Incheon, Tuesday. Courtesy of Samsung Electronics
To further improve Samsung Group's competiveness in the biotechnology industry and make the bio industry into a growth engine that can be comparable to its mighty semiconductor business, the conglomerate will invest 7.5 trillion won over the next 10 years.
The investment will be used to create a second bio campus in Songdo and build four more drug manufacturing plants there to establish a global hub for the biopharmaceutical industry.
“Samsung Biologics plans to create a second bio campus, as it has utilized all existing factory sites with the construction of the fourth factory. On the about 364,000-square-meter site, there will be four additional plants to complete the super gap strategy in the biotechnology field,” the group said.
In addition, Samsung Bioepis, a wholly owned subsidiary of Samsung Biologics, will also expand its biosimilar lineup. The company currently sells six biosimilar products in the market. Most of them are focused on anti-cancer and anti-inflammatory treatments, but it will focus on expanding its pipeline to intractable diseases such as osteoporosis.