Lotte Bio Mega Plant Heading to Songdo, Official Steps Begin

Incheon City and IFEZ Sign MOU
Land Sale Contract Expected to Gain Momentum

Plan to Build 360,000ℓ Capacity with 3.8 Trillion Investment
Opposite Samba's 720,000ℓ Second Campus

Lotte Biologics has taken the first significant step in its 'Mega Plant' project, a large-scale production facility in Songdo, Incheon, backed by a $3 billion (approximately 3.8454 trillion KRW) investment. Following Samsung Biologics, Celltrion, and SK Bioscience, Lotte Biologics is establishing its base in Songdo, which is expected to emerge as the largest and most prominent bio cluster in South Korea.

Expected bird's-eye view of Lotte Biologics' Incheon Songdo Lotte Bio Campus [Photo provided by Lotte Biologics]

On the 20th, Lotte Biologics announced that it signed a four-party Memorandum of Understanding (MOU) with Lotte Corporation, Incheon City, and the Incheon Free Economic Zone Authority (IFEZ) to expedite the establishment of domestic biopharmaceutical production facilities. The signing ceremony held at the IFEZ office was attended by Lee Won-jik, CEO of Lotte Biologics; Lee Hun-ki, President of Lotte Corporation and Chairman of Lotte Biologics' Board; Yoo Jeong-bok, Mayor of Incheon; Kim Jin-yong, Commissioner of the Free Economic Zone Authority; and other officials.

Through this agreement, the four entities will establish a strategic partnership to swiftly advance the project for the domestic mega plant's groundbreaking within the year and to revitalize the Songdo bio cluster. Incheon City and IFEZ will actively cooperate in administrative procedures for the construction and operation of the mega plant, while Lotte Biologics will actively collaborate in securing the site and preparing for facility construction within the year. Lotte Corporation, as a major shareholder of Lotte Biologics, plans to support the successful execution of the project.

Lotte Biologics' plan to expand production capacity displayed at the 'Bio International Convention (BIO USA) 2023' exhibition held in Boston, USA
Photo by Lee Chunhee

At events such as the 'BIO International Convention (BIO USA) 2023,' Lotte Biologics revealed plans to begin construction of its domestic plant within this year, complete the first plant with a production capacity of 120,000 liters by 2025, and obtain Good Manufacturing Practice (GMP) certification by 2026. Subsequently, the second and third plants, each with the same capacity, are planned to be completed in 2028 and 2030 respectively, with GMP approval, achieving a total production capacity of 360,000 liters. Combined with the existing 35,000-liter capacity of its Syracuse, USA plant, the total contract manufacturing organization (CMO) production capacity will reach 395,000 liters.

Additionally, each plant will be equipped with small-scale bioreactors of 2,000 liters for clinical material production and drug product (DP) manufacturing facilities. Lotte Biologics also plans to provide facilities for excellent domestic bio ventures and establish a 'Bio Venture Initiative' as a platform for technological development collaboration to promote mutual growth.

Viewing Incheon Songdo International City as the optimal location for these plans, Lotte Biologics submitted a letter of intent to IFEZ in February. This agreement is expected to accelerate the land purchase contract for the domestic plant establishment.

Incheon Songdo 11 District Advanced Industry Cluster Unit Plan showing the household and lot plan for industrial facility sites. Samsung Biologics has secured the Ki19 site for its 2nd Bio Campus, while Lotte Biologics' Songdo Mega Plant is reportedly likely to be built on the Ki20 site. [Image source=Incheon City]

Regarding the specific site, since most existing sites in Songdo are occupied, District 11, where infrastructure construction is underway, is being considered. Among these, the industrial facility site (Ki) 20, located at the southernmost part with an area of 202,303 square meters, is the most likely candidate.

If this expectation materializes, the site will face the Ki19 site (35,7366 square meters) across the waterfront, where Samsung Biologics' 'Second Bio Campus' is planned. Samsung Biologics has announced plans to build four factories with a total production capacity of 180,000 liters by 2032, adding 720,000 liters of production capacity. This means that within the next decade, a total of 980,000 liters of biopharmaceutical production capacity will be intensively added in this area.

Meanwhile, Lotte Biologics plans to complete and start production of manufacturing facilities for antibody-drug conjugate (ADC) contract development and manufacturing organization (CDMO) market entry, a 'hot item' in the pharmaceutical and bio industries, at its Syracuse, New York plant by 2025. The investment, totaling $80 million (approximately 102.5 billion KRW), has already begun.

Lee Won-jik, CEO of Lotte Biologics, Lee Hoon-gi, President of Lotte Holdings, Yoo Jung-bok, Mayor of Incheon Metropolitan City, and Kim Jin-yong, Head of Incheon Free Economic Zone Authority (from left), are posing for a commemorative photo after signing a business agreement on the 20th.
[Photo by Lotte Biologics]

Lee Won-jik, CEO of Lotte Biologics, stated, "This agreement signifies that Incheon City and IFEZ have welcomed Lotte Biologics' determination to establish a presence in Songdo. We will actively cooperate with Incheon City and IFEZ to ensure a swift land purchase contract with the strong support of Lotte Corporation, aiming for groundbreaking of the domestic mega plant within this year." Lee Hun-ki, President of Lotte Corporation, added, "Lotte Corporation will also support the smooth groundbreaking of Lotte Biologics' domestic mega plant within this year."

Yoo Jeong-bok, Mayor of Incheon, said, "With Lotte Biologics' investment attraction, Incheon has further solidified its status as a 'super-gap bio city.' We will continue to focus on attracting investments and fostering industries in advanced technology fields such as bio." Previously, during last year's local election campaign, Mayor Yoo expressed his commitment to creating a business-friendly environment and providing various incentives to make Incheon the optimal location for Lotte Biologics.

K-Bio Gathering in Songdo: Becoming the World's Largest Cluster?

With Lotte Biologics' move becoming tangible, Songdo has solidified its position as the largest bio cluster in South Korea. As of the end of last year, the top three domestic pharmaceutical and bio companies by market capitalization?Samsung Biologics, Celltrion, and Celltrion Healthcare?are all located in Songdo. Additionally, SK Bioscience, ranked fourth, is constructing a Research & Process Development (R&PD) center with completion targeted for 2025. After completion, SK Bioscience plans to relocate its headquarters from Pangyo, Seongnam, Gyeonggi Province, to Songdo.

The Songdo bio cluster is already recognized as world-class. The biopharmaceutical production capacity in Songdo surpassed 1 million liters recently with the full operation of Samsung Biologics' 4th plant, a figure that boasts overwhelming superiority compared to other major global clusters. Adding Samsung Biologics' Second Bio Campus with 720,000 liters and Lotte Bio Campus with 360,000 liters will bring the additional production capacity to 1.08 million liters, doubling the current scale and further widening the gap.

James Choi, Vice President and Head of Sales Support Center at Samsung Biologics, is explaining the plan to establish the 2nd Bio Campus at the Samsung Biologics booth set up at the BIO International Convention (BIO USA), which opened on the 5th (local time).
[Photo by Lee Chunhee]

As various bio materials, parts, and equipment (SoBuJang) companies and overseas firms move in, a bio ecosystem is also being established. Notably, German life sciences company Sartorius is investing $300 million (approximately 384.4 billion KRW) to build large-scale production and research facilities in Songdo. Sartorius is a leading company competing for market share in various SoBuJang products essential for biopharmaceutical production, such as single-use bags, media, and filters.

The government is also actively supporting the rapidly increasing demand for skilled personnel by establishing a bio process workforce training center in Songdo. The groundbreaking ceremony was held on the 9th, with completion targeted by the end of next year. The plan is to train approximately 2,000 bio-specialized professionals annually.

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