Samba-Celtrion 2.2 Trillion... Boosting K-Bio Production Volume by 50%

Samba 4th Plant Groundbreaking, Completion in 3 Years
World's Largest Production 'Super Plant'
Expected Production-Induced Effect About 5.7 Trillion KRW

Celltrion 3rd Plant & Research Center Groundbreaking
Approximately 3,000 New Jobs Expected

Next Year's Biohealth R&D Budget
Increased by 30% to 1.7 Trillion KRW

[Asia Economy Reporters Hyun-ui Cho and Chae-seok Moon] On the 18th, major domestic biohealth companies announced at a bio-industry event held at Yonsei University International Campus in Songdo, Incheon, attended by President Moon Jae-in, that they will invest 10 trillion won by 2023. In particular, the 'bio two-tops,' Samsung Biologics and Celltrion, plan to establish new production bases to position themselves as global bio production hubs. Once the facility investments of the two companies are completed, domestic bio production capacity is expected to expand by 50% compared to the current level.

◆K-Bio Production Capacity to Expand by 50%= On the same day, Samsung Biologics also held a groundbreaking ceremony for its 4th plant at the Songdo Global Campus in Incheon. The 4th plant, scheduled for completion in 2023, is a so-called 'super plant.' With a production scale of 256,000 liters, it is expected to surpass the current title of 'world's largest single plant' held by Samsung Biologics' 3rd plant. The total floor area is approximately 238,000 square meters (about 72,000 pyeong), which is 1.5 times the size of Seoul's Sangam World Cup Stadium.

The 4th plant is a super plant capable of providing one-stop services from cell line development to finished product manufacturing. A total of 1.74 trillion won will be invested in construction alone. Additionally, if a 100,000-pyeong site is secured for the Songdo 2nd complex and the Open Innovation Research and Development (R&D) Center, the total investment is expected to exceed 2 trillion won. The construction of the 4th plant will create approximately 1,850 new jobs for employees, with an additional 6,400 construction workers employed separately. The production inducement effect is about 5.7 trillion won, and the employment creation effect is about 27,000 people.

Celltrion also held groundbreaking ceremonies for its 3rd plant and Global Biotechnology Research Center on the same day. The total investment scale is 500 billion won. The 3rd plant is scheduled for completion in 2023, and the research center in 2022. The production capacity of the 3rd plant is 60,000 liters, and combined with the currently operating 1st plant (100,000 liters) and 2nd plant (90,000 liters), Celltrion's total production volume will reach 250,000 liters. The new employment generated by the construction of the 3rd plant and research center is about 3,000 people.

Earlier, in May last year, Celltrion announced 'Vision 2030,' which includes investing about 40 trillion won by 2030 to develop Korea into a global hub for bio and chemical pharmaceuticals. Through this, they plan to directly employ 2,000 pharmaceutical R&D personnel and 8,000 bio and chemical pharmaceutical production personnel. The expansion of the 3rd plant is a follow-up phase of the Vision 2030 plan, with Celltrion planning to invest 20 trillion won of the 40 trillion won in the bio-pharmaceutical sector based in Songdo, Incheon.

The government expects that if companies successfully implement such investment plans, there will be an average annual production increase of 20% and the creation of 9,300 new jobs by 2023.

President Moon Jae-in is speaking at a bio-industry event held at Songdo Campus, Yeonsu-gu, Incheon, on the morning of the 18th. Photo by Yonhap News

◆Next Year’s Biohealth R&D Budget Increased to 1.7 Trillion Won= The government announced the 'Commercialization Promotion and Regional Base Advancement Strategy' and the 'R&D Advancement Strategy' together on the same day. Next year's biohealth R&D budget is set at 1.7 trillion won, a 30% increase from this year, to support ▲strengthening pharmaceutical production capabilities such as self-sufficiency in materials, parts, and equipment (MPE) ▲entry into the medical device package market ▲expansion of data utilization and digital healthcare services ▲and regional base advancement to strengthen growth foundations.

The government is promoting the establishment of a 'Pharmaceutical Manufacturing Innovation Center' to advance the production and distribution structure of pharmaceuticals, support workforce training, and mitigate development risks. Additionally, this year, a bio workforce training center was established at Yonsei University International Campus, with plans to train 2,000 development and process personnel annually starting in 2024.

Expansion of clusters at nationwide hubs such as Songdo, Incheon (biopharmaceuticals), Wonju, Gangwon (medical devices and healthcare), and Osong and Daegu, Chungbuk (advanced biohealth infrastructure) will also proceed. Songdo will focus on workforce supply and bio MPE, Wonju on market entry and cooperation among innovation entities, and Osong and Daegu on spreading startup achievements and commercialization, respectively.

The event was attended by President Moon, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, Sung Yun-mo, Minister of Trade, Industry and Energy, government officials, companies such as Samsung Biologics and Celltrion, institutions including the Bio Association, and students from Yonsei University.

Samsung Biologics Begins Construction of Plant 4 in Songdo
[Image Source=Yonhap News]

This content was produced with the assistance of AI translation services.