[Asia Economy Reporter Park So-yeon] As Pfizer, a multinational pharmaceutical company, enters Phase 3 clinical trials for its COVID-19 vaccine, industry attention is focusing on the ultra-low temperature cold chain logistics infrastructure required for the distribution of the Pfizer vaccine. If the Pfizer vaccine receives fast-track approval without major setbacks, supply is expected to begin as early as the second quarter of next year through an ultra-low temperature distribution network.
The Pfizer vaccine must be distributed at ultra-low temperatures below minus 70°C, and in South Korea, the only logistics company with the technological capability to meet this condition is Korea Superfreeze, in which SK Inc. invested in January. Earlier this year, SK Inc. invested approximately 25 billion KRW in Belstar Superfreeze, which holds 100% of Korea Superfreeze’s shares, acquiring a 20% stake and becoming the second-largest shareholder.
Korea Superfreeze completed a modern low-temperature logistics center on a 28,000-pyeong site in the Oseong Industrial Complex, Pyeongtaek City, Gyeonggi Province, in April last year and has been operating it since June. Starting this year, the company plans to expand its business by participating in the development project of the ultra-low temperature complex logistics center, which will be the largest in the country and is scheduled to be established by the Incheon Port Authority in the new port hinterland of Songdo International City, Incheon. SK Inc. also holds an option to invest an additional 12.5 billion KRW.
Korea Superfreeze’s distinctive competitive edge lies in its technology that recycles the cold energy generated during the process of converting liquefied natural gas (LNG) back into gaseous form at an ultra-low temperature of minus 162°C as a refrigerant for low-temperature logistics. This technology not only allows the reuse of wasted LNG cold energy but also prevents environmental pollution by discharging seawater used in vaporization back into the sea. Compared to conventional electric refrigeration methods, it can reduce electricity costs by up to 70%, offering excellent cost competitiveness. Korea Superfreeze is the only company worldwide with ultra-low temperature logistics center technology utilizing LNG cold energy.
EMP Belstar previously signed a memorandum of understanding with the Incheon Port Authority at the end of last year to attract investment worth 300 billion KRW for the cold chain cluster development project. If a cold chain cluster is established on land near the Incheon Songdo LNG terminal, part of the site could be used to build a dedicated logistics center for storing pharmaceuticals such as the Pfizer vaccine.
SK Inc. entered the logistics business in 2017 by investing in the global logistics company ESR (E-Shang Redwood Group). Due to the explosive growth of e-commerce, the value of SK Inc.’s stake doubled in two years, and with ESR’s successful listing on the Hong Kong Stock Exchange recently, SK Inc.’s investment foresight has been proven once again.
An industry insider said, "Since Korea Superfreeze is the only domestic company equipped with ultra-low temperature logistics technology and infrastructure below minus 70 degrees, there is no other option but to utilize Korea Superfreeze’s infrastructure for the distribution of the Pfizer vaccine in South Korea. As SK Inc. also holds an option for additional investment in Belstar Superfreeze, it is expected to maximize the benefits from its early investment in the high-value ultra-low temperature distribution network."
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