Lotte Biologics Expands with Three New Drug Manufacturing Plants in Songdo
Lotte Biologics, a leading biopharmaceutical company, has announced its plans to expand its operations with the construction of three new drug manufacturing plants in Songdo, Incheon. With this strategic move, Lotte Biologics aims to establish itself as a global contract development and manufacturing organization.
In a recent land purchase agreement with the Incheon Free Economic Zone Authority, Lotte Biologics secured the necessary space to build the biomanufacturing facilities. Each of these plants will have a manufacturing capacity of 120,000 liters, adding to Lotte Biologics’ existing capacity of 360,000 liters in Songdo and 40,000 liters at its Syracuse plant in New York. This expansion will bring their total capacity to an impressive 400,000 liters.
The construction of the three plants is expected to be completed in phases, with plants one, two, and three scheduled for completion in 2025, 2027, and 2030, respectively. Full-scale operations are anticipated to begin in 2034.
Interestingly, the construction site for Lotte Biologics’ new plants is situated across from Samsung Biologics’ second campus, where their fifth plant is currently under construction. This proximity between the two major biopharmaceutical companies, both affiliated with South Korea’s largest conglomerates, sets the stage for potential rivalry in the future. However, industry experts believe it is too early to determine if Lotte Biologics will become a direct competitor to Samsung Biologics, which currently holds the title of the world’s largest contract development manufacturing organization.
According to industry sources, achieving tangible outcomes for Lotte Biologics may take some time. Similar to Samsung Biologics, which took several years to secure its first contract manufacturing order after establishment, Lotte Biologics may face challenges in building its reputation and securing initial orders due to its lack of a track record at the new manufacturing facility in Songdo. Acquiring good manufacturing practice certifications from regulatory bodies such as the European Medicines Agency and the US Food and Drug Administration could also take one to two years.
Furthermore, the sources suggest that the gap between Lotte Biologics and Samsung Biologics may widen by 2034 when Lotte Biologics’ three plants commence full operation. The speed at which companies operate in the contract development and manufacturing organization industry is crucial, and Samsung Biologics is expected to accelerate its expansion over the next decade, potentially outpacing Lotte Biologics.
Despite the challenges, Lotte Biologics remains optimistic about its entry into the market. The company views the contract development manufacturing organization business as a significant future growth engine within the Lotte Group. Lotte Biologics has already initiated discussions with potential clients, even though the plants are not yet constructed. The company believes that its existing manufacturing facility in Syracuse will help expedite the process of securing the first order for its new facility in Songdo.
When asked about the potential rivalry with Samsung Biologics, Lotte Biologics responded humbly, acknowledging Samsung’s position as the industry’s biggest player. Lotte Biologics aims to focus on increasing its presence in the thriving industry rather than comparing itself to a larger competitor.
As the construction of these three new drug manufacturing plants moves forward, the biopharmaceutical landscape in Songdo will undoubtedly undergo significant changes. The competition between Lotte Biologics and Samsung Biologics will be closely watched, as both companies strive to establish their dominance in the contract development and manufacturing organization sector.
