SOUTH KOREA — Samsung Biologics, a CDMO, has announced that it will construct a fifth plant in response to growing market demand.

The new facility, which is part of the company’s second Bio Campus, will have a manufacturing capacity of 180,000 liters and is scheduled to begin operations in 2025, following construction in the first half of 2023.

The investment of over KRW 1.9 trillion (US$1.5 billion) in this facility reinforces Samsung Biologics’ commitment to continuous capacity expansion.

Upon completion, the total site capacity of Samsung Biologics will increase to 784,000 liters, making it a leading CDMO in the industry.

The move is in response to the company’s increased business momentum and expansion in capacity, portfolio, and geography.

According to John Rim, President and CEO of Samsung Biologics, “The new facility will enable us to provide our customers with even greater innovation and services that will increase speed to market and flexibility,” reflecting the company’s commitment to meeting the needs of its customers.

Samsung Biologics plans to leverage its experience with Plants 1 through 4, along with advanced digitalization and sustainability features, to maximize operational efficiency and enhance capabilities at its new fifth plant.

The company’s second Bio Campus, where the fifth plant will be located, was established in July 2022 after Samsung Biologics acquired 360,000 square meters of land.

The Bio Campus will include additional large-scale plants and an open innovation center, with a total investment of KRW 7.5 trillion (US$5.7 billion).

As Plants 1 through 3 are already nearing full capacity utilization and Plant 4 is expected to commence full operations by mid-year, the fifth plant will be a valuable addition for Samsung Biologics to expand its capacity and leadership position in the global CDMO market.

Samsung Biologics has secured another major deal, this time with Pfizer. While the exact details of the products covered by the US$183 million deal through 2029 are still unknown, this partnership represents another significant milestone for the South Korean company.

Meanwhile, Samsung Biologics has been rapidly expanding its partnerships with pharmaceutical companies, including its collaboration with Moderna on the production of the COVID-19 vaccine and a recent US$296 million agreement with GSK.

Additionally, the company will open a regional office in New Jersey to better serve clients in the U.S. and Europe.

Samsung Biologics is also looking to increase its footprint in the U.S. with the opening of sales offices in New Jersey and Boston.

John Rim, the newly elected Chair of the Board of Directors, will steer Samsung Biologics’ long-term growth strategy and reinforce its position as a leading global CDMO.

Our increased U.S. presence will allow us to provide support for clients with even greater agility and engage the broader biotech industry more than ever,” Rim said.

The company faces competition from other Asia-based CDMOs, including Lotte, SK, and Fujifilm, who have made purchases or expansions to grow their own CDMO branches.

The increased competition shows the growing need for CDMOs post-pandemic as pharmaceutical companies seek to outsource more of their manufacturing operations.

The COVID-19 pandemic has highlighted the need for reliable and efficient drug manufacturing to meet the surge in demand for vaccines, treatments, and medical supplies.

Contract development and manufacturing organizations (CDMOs) have played a crucial role in scaling up production to meet these needs.

As the world begins to emerge from the pandemic, the demand for CDMO services is expected to continue growing.

Biopharmaceutical companies are increasingly outsourcing their drug development and manufacturing processes to CDMOs to reduce costs, accelerate time to market, and access specialized expertise and equipment.

Moreover, the pandemic has exposed the vulnerability of global supply chains, leading to a push for localization and resilience in drug manufacturing.

This trend is likely to boost demand for CDMOs that can offer reliable and flexible local manufacturing solutions.

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