L&K Biomed, Groundbreaking Ceremony for 2nd Factory... "Advanced Spinal Implant Production Outpost"

[Asia Economy Reporter Yoo Hyun-seok] L&K Biomed, a specialist in spinal implants, announced on the 21st that it held a groundbreaking ceremony for its second factory at Daewoo Frontier Valley in Yongin-si, Gyeonggi-do, to handle the significantly increasing export volume due to business expansion in overseas markets such as the United States.

Many stakeholders attended the groundbreaking ceremony for the second factory, including Chairman Kang Guk-jin, CEO Park Geun-joo, Vice Chairman Ki Sung-wook, Outside Directors Sung Kyung-seop and Bang Seon-gyu, Rootlock CEO Park Jong-jin, as well as partner companies and employees.

The second factory will be located on the first floor of the same building as the currently operating first factory. Completion is targeted for the end of February next year. The second factory will house production facilities for L&K Biomed’s future growth driver, the Expandable Interbody Fusion Cage, as well as specialized production facilities for research and customer support.

The expansion of the second factory aims to more than double the existing production capacity. Upon completion, the current production method, which partly relies on outsourcing, will shift to in-house production. According to company officials, this change is expected to increase production volume and shorten delivery times.

The second factory is designed to allow concentration of equipment at each process stage. To increase production volume and efficiently manufacture precision-machined parts, additional MCT and CNC multi-tasking machines have been installed. A state-of-the-art 3D printer will also be introduced to produce 3D printed cages, a product currently a hot topic in the global spinal implant market.

In particular, L&K Biomed is promoting plans to sterilize its entire product lineup to suit ‘untact’ (non-face-to-face) services focused on infection prevention following the COVID-19 pandemic. Furthermore, it aims to provide surgical instruments as sterilized disposable items. The second factory will be equipped with process lines to support these initiatives.

Son Woo-geun, Head of Production Technology, stated, “The second factory will not only increase production volume and reduce manufacturing costs through optimized processes but also establish specialized production facilities for research and customer support simultaneously. This will enable us to promptly respond to diverse customer needs, enhancing customer loyalty and securing a competitive edge over rivals.”

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CEO Park Geun-joo said, “The second factory will serve as a core asset for L&K Biomed and a production outpost for the Expandable Interbody Fusion Cage, a future growth driver prepared for the post-COVID era. It will be the starting point for expanding our scope from a specialized medical device manufacturer for spinal disease treatment to a leading global healthcare company responsible for health in the era of human longevity.”

L&K Biomed recently achieved a turnaround with a net profit of 400 million KRW in the first half of this year, driven by a significant increase in export volume through partnerships with leading global medical device manufacturers, distributors, and sellers. Anticipating that sales growth in 2021 will depend on supply, the company has focused on factory expansion and facility investment.

In 2021, when the second factory is fully operational, L&K Biomed expects to secure growth momentum as a leading global company in the spinal implant field by producing innovative products such as sterilized products that eliminate the complex pre-sterilization process during spinal surgery.

L&K Biomed holds patents related to spinal implant medical devices that cover all products from the upper to the lower spine. Recognized for its technology in the U.S. market, the company has obtained FDA approval for three types of spinal implant products used in the lumbar region: posterior approach, lateral approach, and oblique lateral approach.

Currently, L&K Biomed is focusing on developing products applicable to all approaches other than the existing ones, as well as cervical implant products. By the first half of next year, it plans to enter the U.S. market with height-adjustable cages for the anterior approach used in the lumbar region and height-adjustable cages for the cervical region.