CEO MESSAGE Driven. For Life.
SAMSUNG BIOLOGICS 2023. 03
IR Newsletter
Plant 5 Expansion Plan
Dear Investors,
This is John Rim, CEO of Samsung Biologics.
We are pleased to announce that we have decided to build our fifth facility, Plant 5, from the ground up.
With the addition of Plant 4's capacity of 240KL to be completely operational by June this year, Bio Campus I is on track to become fully occupied with the largest manufacturing facilities at 604KL.
With all three plants operating at full capacity, Samsung Biologics recognized the need for additional capacity development and proactively purchased a plot of land 30% larger than the existing Bio Campus I to lay the groundwork for a large-scale bio complex for future growth.
Plant 4 began partial operations in Oct. 2022, and we have secured 11 large-scale manufacturing contracts with 8 global biopharmaceutical companies and are actively negotiating an additional 34 contracts with 26 global major pharmaceutical companies. Based on such strong demand on the horizon, we decided to build our fifth facility even before Plant 4 was fully operational in order to meet our clients' needs in a timely manner.
Plant 5 will be the first plant to be housed in Bio Campus II, with a capacity of 180KL, identical to Plant 4's phase 2 large scale design.
Bio Campus II - conceptual rendering Plant 5 Construction Plan • Location: Bio Campus II in Songdo, Incheon (Approx. 35.7 million square meters) • Capacity: 180KL (Approx. 9.5 million square meters) • Construction Period (Target): Groundbreaking in Mar. 2023; CGMP ready by Sep. 2025 Expected CAPEX: Approx. KRW 1.98 trillion (incl. production support and utility facilities)
With Plant 5, we will integrate simplified and standardized design and processes of our existing plants to save construction time and cost, in addition to optimizing operations. Simultaneously, we aim to introduce even greater competitive advantage and service perfection by incorporating cutting-edge technologies including automated equipment and systems and energy efficiency, while leveraging our deep expertise and know-how gained from the operation of our Bio Campus I plants 1, 2, 3, and 4.
Using Plant 5 as a starting point, Samsung Biologics will invest approximately KRW 7 trillion in the development of Bio Campus II, which will include the construction of three additional large-scale mAb manufacturing facilities as well as an Open Innovation center to promote and foster innovative biotechnologies. Furthermore, we will continue to implement various inorganic strategies and pursue portfolio and geographic expansion in order to keep our commitment to being a top-tier biopharmaceutical company.
As always, your continuous faith and support in us is greatly appreciated.
Sincerely,
March 17, 2023 President & CEO John Rim
CEO MESSAGE Driven. For Life.
SAMSUNG BIOLOGICS 2023. 03
IR Newsletter
Plant 5 Expansion Plan
Dear Investors,
This is John Rim, CEO of Samsung Biologics.
We are pleased to announce that we have decided to build our fifth facility, Plant 5, from the ground up.
With the addition of Plant 4's capacity of 240KL to be completely operational by June this year, Bio Campus I is on track to become fully occupied with the largest manufacturing facilities at 604KL.
With all three plants operating at full capacity, Samsung Biologics recognized the need for additional capacity development and proactively purchased a plot of land 30% larger than the existing Bio Campus I to lay the groundwork for a large-scale bio complex for future growth.
Plant 4 began partial operations in Oct. 2022, and we have secured 11 large-scale manufacturing contracts with 8 global biopharmaceutical companies and are actively negotiating an additional 34 contracts with 26 global major pharmaceutical companies. Based on such strong demand on the horizon, we decided to build our fifth facility even before Plant 4 was fully operational in order to meet our clients' needs in a timely manner.
Plant 5 will be the first plant to be housed in Bio Campus II, with a capacity of 180KL, identical to Plant 4's phase 2 large scale design.
Bio Campus II - conceptual rendering Plant 5 Construction Plan • Location: Bio Campus II in Songdo, Incheon (Approx. 35.7 million square meters) • Capacity: 180KL (Approx. 9.5 million square meters) • Construction Period (Target): Groundbreaking in Mar. 2023; CGMP ready by Sep. 2025 Expected CAPEX: Approx. KRW 1.98 trillion (incl. production support and utility facilities)
With Plant 5, we will integrate simplified and standardized design and processes of our existing plants to save construction time and cost, in addition to optimizing operations. Simultaneously, we aim to introduce even greater competitive advantage and service perfection by incorporating cutting-edge technologies including automated equipment and systems and energy efficiency, while leveraging our deep expertise and know-how gained from the operation of our Bio Campus I plants 1, 2, 3, and 4.
Using Plant 5 as a starting point, Samsung Biologics will invest approximately KRW 7 trillion in the development of Bio Campus II, which will include the construction of three additional large-scale mAb manufacturing facilities as well as an Open Innovation center to promote and foster innovative biotechnologies. Furthermore, we will continue to implement various inorganic strategies and pursue portfolio and geographic expansion in order to keep our commitment to being a top-tier biopharmaceutical company.
As always, your continuous faith and support in us is greatly appreciated.
Sincerely,
March 17, 2023 President & CEO John Rim
- CDO
- CGMP
- ADC
- Bio Campus
- IR
- CMO