The Incheon Metropolitan City Government has agreed to a real estate deal with Samsung Biologics (CEO:John Rim) at Incheon City Hall on July 18.
▲ On July 28, KimYeon-joo, Assistant Director of New Bio Industry at the Incheon Free Economic Zone (IFEZ) Authority, held a press conference following the “Signing Ceremony for the Investment Contract between Incheon and Samsung Biologics” at the Briefing Room inside the City Hall building.
According to the terms of the contract, Incheon and Samsung Biologics will look to attract new research and manufacturing facilities with the right capacity to lead the global high-tech medicine field to block no. 11 (430, Songdo-dong; a high-tech industrial cluster (C) at Songdo International City. The contract worth KRW 426 billion(land area: 357,366 ㎡ ) was signed by Incheon Mayor Yoo Jeong-bok, acting Deputy Commissioner of the IFEZ Authority Seong Yong-won, and Samsung Biologics CEO John Rim.
The was previously assigned to attract facilities and institutions from across the globe and create an ecosystem for the high-tech industry. IFEZ's new development plan to build a bio industry cluster was approved by the Ministry of Trade, Industry and Energy in July 2019. Then, in September 2020, IFEZ established a new strategy aimed at boosting the competitiveness of Korea's biopharmaceutical industry on the global stage and bringing in companies that can help develops mall and medium-sized enterprises (SMEs) as well as venture corporations in Korea.
IFEZ embarked on an open round of recruiting business operators in October of last year, and ultimately selected Samsung Biologics as its preferred bidder in December 2021.
▲ Map of block 11 in Songdo purchased by Samsung Biologics.
With the development and supply of vaccines and therapeutics emerging as a top national priority for countries around the world since the outbreak of COVID-19, this new deal between Incheon and Samsung Biologics is expected to help Korea’s biopharmaceutical industry improve its presence on the global market by attracting major R&D and manufacturing facilities to Songdo and by ensuring world-class quality.
Meanwhile, Samsung Biologics was established in April 2011, and the company is a contract development and manufacturing organization (CDMO) in the biopharmaceutical sector at a high-tech industrial cluster (B) at block 5 in Songdo (201-2,Songdo-dong). In November 2021, just a decade since it was first created, Samsung Biologics broke ground for its 4th plant, making it the world's largest stand-alone biopharmaceutical manufacturer (based on production capacity; total production capacity: 620,000 liters). The company also surpassed the KRW 1.5trillion mark in sales revenue, and continues to make bold investments, which have led to some unprecedented success. This year, Samsung Biologics has continued to win orders from pharmaceutical companies around the world, and the partial opening of its 4th plant this October is expected to add more forward momentum for the company.
▲ Detailed map of block 11in Songdo purchased by Samsung Biologics and the surrounding environment
Samsung Biologics is hoping to create a “super gap,” which other competitors worldwide simply cannot bridge, with its latest deal to buy block 11 in Songdo. The goal is to build four more factories in block 11 and at least one production campus in block 5. Should everything proceed as planned, Samsung Biologics will establish itself as the undisputed no. 1 CDMO in the biopharmaceutical sector. The total project cost is expected to be around KRW 7 trillion.
Samsung Biologics is also planning to promote an industry-wide initiative for venture corporations and SMEs in the biopharmaceutical field. During the first phase, the company is expected to build an industry incubator facility where venture corporations and SMEs can move in and get the support they need for R&D and commercialization. Samsung Biologics will offer other support in the form of consulting services, seminars, domestic and overseas networking opportunities, etc. in this first phase.
With campus #2 in block11, Samsung Biologics expects to create an average of 400 jobs per year. The goal is to create 4,000 jobs at the 10-year mark of the contract for block 11(2032). Add more than 1,000 jobs at other affiliated companies and 5,000construction workers, block 11 alone will likely create more than 10,000 jobs throughout its life.
CEO John Rim said, “I would like to express my sincere gratitude to the Ministry of Trade, Industry and Energy and the Incheon Metropolitan City Government for creating the conditions for Samsung Biologics to make preemptive and bold investments. Samsung Biologics promises to become a company that can lead the global biopharmaceutical industry and grow together with the local region by executing its investment plan with minimal setbacks.”
