Samsung Biologics with 5th Plant Wings "Aiming for Overwhelming Global No. 1"

Securing Total Production Capacity of 780,000ℓ with 180,000ℓ
2 Trillion Won Invested, Completion Targeted for 2025

CEO John Lim Also Serves as Chairman of the Board
"Expertise Needed... Dual Roles Are a Global Trend"

Aerial view of Samsung Biologics' 2nd Bio Campus in Songdo, Incheon [Photo by Samsung Biologics]

Samsung Biologics is set to secure an overwhelming lead in Contract Development and Manufacturing Organization (CDMO) production capacity through the construction of its second bio campus.

On the 17th, Samsung Biologics held a board meeting and approved plans to build Plant 5 on a 357,366㎡ site secured in Songdo District 11, Incheon, for the second campus. Construction is scheduled to begin within this year once related procedures are completed, with completion targeted for September 2025.

At the shareholders' meeting held earlier that day, John Rim, CEO of Samsung Biologics, stated, "We will accelerate the expansion of our three growth pillars. Once we fully operate Plant 4, the world's largest with a capacity of 240,000 liters, this year, we will have a total production capacity of 604,000 liters, creating an overwhelming gap as the global No. 1 CDMO company." He added, "We plan to invest a total of 7.5 trillion KRW in the second bio campus to build large-scale biopharmaceutical production facilities and research facilities for fostering next-generation drug technologies."

Currently, Samsung Biologics maintains a global No. 1 level CDMO production capacity by combining Plants 1 to 3 with 364,000 liters and partial operation of Plant 4. Last year, it became the first domestic pharmaceutical and bio company to surpass annual sales of 3 trillion KRW. However, the company is not satisfied with this and plans to continue expanding facilities to widen the gap further. To this end, it has secured a site 1.3 times larger than the existing first campus's 274,000㎡ and will invest more than twice the 3.6 trillion KRW spent on the first campus.

Plant 5 will be constructed with a total floor area of 96,000㎡ and a production capacity of 180,000 liters. Upon completion, Samsung Biologics will have a total production capacity of 784,000 liters. With over 1 trillion KRW invested solely in plant construction, a total of 1.9801 trillion KRW will be invested to establish related infrastructure such as water and electricity, as this will be the first plant built on the second campus.

After the board meeting, CEO Rim told reporters, "The existing plants were built as standalone factories, but as we pioneer the second campus for the first time, infrastructure is being built alongside the plant, and inflation has also had an effect." He added, "From Plant 6 onwards, investment costs will be lower." Considering that Samsung Biologics completed the construction of Plant 4, the world's largest single-plant scale, in about two years through a speed race, it appears the company plans to continue this rapid construction pace.

In addition to enhancing production capacity, Samsung Biologics plans to expand its three growth pillars through securing technology and expanding geographic bases. CEO Rim said, "This year, we will expand our CDMO portfolio to next-generation therapeutics such as antibody-drug conjugates (ADC) and gene therapies, responding swiftly to market changes and demands." Work on ADCs has already begun, with production targeted for the first quarter of this year. ADCs are drugs that conjugate antibodies and drugs, effectively delivering toxins specifically to cancer cells like guided missiles, making them a next-generation cancer treatment technology.

Regarding geographic bases, the company will continue its expansion into the U.S. Following the establishment of an R&D center in San Francisco in 2020, it recently set up a sales office in Boston. Additionally, it plans to open a sales office in New Jersey, home to many global big pharma companies, within this month. The company intends to further expand its global network by entering other key locations.

On the morning of the 17th, John Rim, CEO of Samsung Biologics, is speaking at the shareholders' meeting held at the Samsung Biologics Global Hall in Songdo, Incheon.
[Photo by Samsung Biologics]

Meanwhile, at the board meeting, the agenda for John Rim to assume the vacant chairmanship of the board was unanimously approved after former CEO Kim Tae-han, who had served as board chairman since stepping down as CEO in 2020, was not reappointed as an inside director at this shareholders' meeting. Since his appointment in 2021, John Rim has nearly tripled sales in two years, and this move is seen as a plan to strengthen his influence within the company and continue growth.

Park Yong, Head of Human Resources Support Center at Samsung Biologics (Executive Director), explained, "Due to the nature of the bio industry, expertise is required. The board judged that it would be best for CEO Rim, who has global competitiveness through diverse experience in this field, to continue." CEO Rim also added, "Many pharmaceutical companies such as AbbVie, Johnson & Johnson (J&J), Thermo Fisher Scientific, and Bristol-Myers Squibb (BMS) have chairmen who also serve as CEOs."