Samsung BioLogics Breaks Ground For Its Third Pharmaceutical Facility in Songdo Worth $721 Milllion; Expected to Have Best Production Capacity In The World

Samsung BioLiogics, the pharmaceutical division of the Samsung Group, broke ground in Songdo, Incheon on Monday where the world's largest biopharmaceutical manufacturing plant will soon rise.

Korea Herald reported Monday that Samsung BioLogics will invest $721 million to build the pharmaceutical facility in Songdo, which is expected to be completed on 2017 and undergo a validation process nine months thereafter.

Upon completion, the Songdo plant will feature an annual production capacity of 180,000 liters. Samsung BioLogics already operates two factories in Songdo, on which the company invested 2.1 trillion won. One of the factories boasts an annual production capacity of 30,000 liters and 150,000 liters for the other.

By the time Samsung BioLogics completes its third plant in Songdo, the company will then have a total annual production capacity of 360,000 liters, outranking even the biggest pharmaceutical plants in the world such as Switzerland's Lonza group (260,000 liters) and Germany's Boehringer Ingelheim (240,000 liters).

Production capacity is measured by the combined amount of pharmaceutical product a respective bioreactor may produce in a single cycle, Korea JoongAng Daily noted Tuesday.

Samsung BioLogics president and CEO Kim Tae Han said, "We have decided to invest in the third plant earlier than planned to supply products with enhanced stability to the rapidly growing biopharmaceutical market and to meet demand from global pharmaceutical companies."

He also said that the plant's production capacity will be up to par with global competitive standards.

Moreover, plants fourth and fifth are currently being planned.

Samsung BioLogics currently produces products for renowned pharmaceutical brands such as the United States' Bristol-Myers Squibb and Switzerland's Roche Holding.

With a third factory running, Samsung projects its annual sales and operation profits to reach two trillion won and one trillion won, respectively.

Kim Tae Han added, "We aim to repeat the success story of Samsung's semiconductor business. We will ramp up efforts to produce quality products at cheaper prices."