Samsung Biologics is preparing to complete its Plant 5 next month while simultaneously pushing forward with plans for Plant 6. (Image courtesy of Samsung Biologics)
SEOUL, March 17 (Korea Bizwire) — Major South Korean pharmaceutical and biotech companies are rapidly expanding their Contract Development and Manufacturing Organization (CDMO) facilities to meet growing global demand and strengthen their production capabilities for new business ventures.
Samsung Biologics is preparing to complete its Plant 5 next month while simultaneously pushing forward with plans for Plant 6. The new Plant 5, located at the second Bio Campus in Songdo, Incheon, represents a 2 trillion won investment and will have a production capacity of 180,000 liters. Upon completion, it will bring Samsung Biologics’ total production capacity to 784,000 liters.
The company is also pursuing construction of Plant 6, targeted for completion in 2027. With another 180,000-liter capacity, this facility would increase the company’s total production capability to 964,000 liters. The final groundbreaking timeline for Plant 6 awaits board approval. Samsung Biologics attributes this expansion to increasing customer demand for greater production capacity.
Celltrion, which launched its CDMO-specialized subsidiary Celltrion BioSolutions last December, is also embarking on ambitious construction plans. The company is currently evaluating potential sites in Songdo for a facility with a maximum capacity of 200,000 liters. The initial phase involves breaking ground this year on a 100,000-liter Plant 1, with plans to expand capacity based on production and supply sustainability assessments.
The new facility will feature both large and small-scale bioreactors for mass production and will be capable of flexible manufacturing of antibodies, antibody-drug conjugates (ADCs), and multi-specific antibodies. Additionally, Celltrion is investing 300 billion won to build a biopharmaceutical production plant in Yesan, South Chungcheong Province, by 2028. Chairman Seo Jung-jin explained this move as part of strengthening biopharmaceutical production capabilities while contributing to regional development.
Lotte Biologics, after acquiring a 40,000-liter biopharmaceutical production plant from Bristol Myers Squibb, began construction of its Plant 1 at Songdo Bio Campus last year. The 120,000-liter facility is scheduled for completion next year and will begin full operations in 2027. The company plans to build three such plants at its Songdo Bio Campus, which would establish a total production capacity of 400,000 liters, positioning it to achieve its goal of becoming a top 10 global CDMO.
SK Pharmteco, SK Inc.’s pharmaceutical CDMO subsidiary, is investing $260 million to construct a small molecule and peptide production facility in Sejong. This 12,600-square-meter facility, SK Pharmteco’s fifth plant in Korea, is scheduled to begin operations in late 2026. The company says this investment responds to increasing demand for high-quality peptides and small molecules, essential components in various innovative therapeutics.
Industry analysts expect further expansion of CDMO facilities as global demand continues to grow. A recent Daishin Securities report noted that CDMO contracts have evolved from short-term, one-off agreements to strategic partnerships lasting 7-10 years. The report predicts these strategic partnerships will become even more crucial as global pharmaceutical companies increasingly outsource their production needs.
Ashley Song (ashley@koreabizwire.com)
