Samsung Biologics Signs Land Sale Contract for Songdo 2nd Campus... "Leap to the Undisputed Global No.1 CDMO"

357,000㎡ Scale, Sale Price 426 Billion KRW
Establishment of Biopharmaceutical Production Facility and Open Innovation Center

From the left, Sung Yong-won, Acting Deputy Director of Incheon Free Economic Zone Authority, Yoo Jeong-bok, Mayor of Incheon Metropolitan City, John Rim, CEO of Samsung Biologics.

[Asia Economy Reporter Lee Gwan-joo] Samsung Biologics announced on the 18th that it has signed a land sale contract with Incheon City for the establishment of its 2nd Bio Campus.

This contract involves the supply of one industrial facility site in the Advanced Industry Cluster of District 11, Songdo International City, with a site area of 357,366㎡ and a sale price of 426 billion KRW. The Incheon Free Economic Zone Authority began a public recruitment for the project operator for the site in October last year and selected Samsung Biologics as the preferred negotiator in December. After the preferred negotiation process, the land sale contract was finalized.

Samsung Biologics had fully utilized the land by expanding the 4th plant in addition to the 1st, 2nd, and 3rd plants within the existing 1st campus. To respond to the rapidly increasing demand for biopharmaceuticals and to expand facilities capable of producing various next-generation medicines, the company decided to purchase an additional site for the 2nd campus, which is about 30% larger than the 1st campus (238,000㎡).

Through this land acquisition, Samsung Biologics plans to complete an ultra-gap that global competitors cannot follow. By building four plants in District 11 alone, it will secure additional production facilities exceeding those of the 1st campus in District 5, aiming to firmly establish itself as the world's No. 1 CDMO (Contract Development and Manufacturing Organization) company. The total project cost is expected to be around 7 trillion KRW.

The 2nd campus will include global biopharmaceutical production facilities as well as an Open Innovation Center, a space for nurturing bio ventures. Additionally, global research and development (Global R&D) and analytical service facilities will be established to strengthen R&D capabilities.

The establishment of the 2nd campus is also expected to create an average of 400 jobs annually. By 2032, ten years after the contract signing, a total of 4,000 jobs are anticipated. Including about 1,000 jobs created through partner companies and 5,000 construction workers, a total of approximately 10,000 jobs will be generated.

Samsung Biologics is leading record-breaking order achievements by consecutively signing large-scale contract manufacturing agreements with global pharmaceutical companies, leveraging its CDMO competitiveness. As of this year’s disclosures, it has signed six contracts totaling 764.1 billion KRW, exceeding 60% of last year’s total order amount. The disclosed clients mainly include global big pharma companies such as Merck, GSK, Eli Lilly, and Novartis. In particular, Merck is expected to continue its partnership through a 270 billion KRW contract signed this month.

Meanwhile, the 4th plant currently under construction (256,000ℓ) is scheduled for partial operation in October this year and completion next year, which will increase Samsung Biologics’ total production capacity to 620,000ℓ, making it the world’s No. 1 in the CDMO sector. Since the existing plants are virtually operating at full capacity, the establishment of the 2nd campus is seen as a new leap forward.

John Rim, CEO of Samsung Biologics, emphasized, "We express our gratitude to the Ministry of Trade, Industry and Energy and Incheon City for creating conditions that allow Samsung Biologics to make proactive and bold investments. We will carry out our investment plans without delay to lead the global biopharmaceutical industry and become a company that grows together with the local community."

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