The Incheon MetropolitanCity 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 EconomicZone (IFEZ) Authority, held a press conference following the “Signing Ceremonyfor the Investment Contract between Incheon and Samsung Biologics” at theBriefing Room inside the City Hall building.
According to the terms ofthe contract, Incheon and Samsung Biologics will look to attract new research andmanufacturing facilities with the right capacity to lead the global high-techmedicine field to block no. 11 (430, Songdo-dong; a high-tech industrialcluster (C) at Songdo International City. The contract worth KRW 426 billion(land area: 357,366 ㎡ ) wassigned by Incheon Mayor Yoo Jeong-bok, acting Deputy Commissioner of the IFEZAuthority Seong Yong-won, and Samsung Biologics CEO John Rim.
The was previouslyassigned to attract facilities and institutions from across the globe andcreate an ecosystem for the high-tech industry. IFEZ's new development plan tobuild a bio industry cluster was approved by the Ministry of Trade, Industryand Energy in July 2019. Then, in September 2020, IFEZ established a newstrategy aimed at boosting the competitiveness of Korea's biopharmaceuticalindustry on the global stage and bringing in companies that can help developsmall and medium-sized enterprises (SMEs) as well as venture corporations inKorea.
IFEZ embarked on an openround of recruiting business operators in October of last year, and ultimatelyselected Samsung Biologics as its preferred bidder in December 2021.
▲ Map of block 11 inSongdo purchased by Samsung Biologics.
With the development andsupply of vaccines and therapeutics emerging as a top national priority forcountries around the world since the outbreak of COVID-19, this new dealbetween Incheon and Samsung Biologics is expected to help Korea’sbiopharmaceutical industry improve its presence on the global market byattracting major R&D and manufacturing facilities to Songdo and by ensuringworld-class quality.
Meanwhile, SamsungBiologics was established in April 2011, and the company is a contractdevelopment and manufacturing organization (CDMO) in the biopharmaceuticalsector 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 largeststand-alone biopharmaceutical manufacturer (based on production capacity; totalproduction capacity: 620,000 liters). The company also surpassed the KRW 1.5trillion mark in sales revenue, and continues to make bold investments, whichhave led to some unprecedented success. This year, Samsung Biologics has continuedto win orders from pharmaceutical companies around the world, and the partialopening of its 4th plant this October is expected to add more forward momentumfor the company.
▲ Detailed map of block 11in Songdo purchased by Samsung Biologics and the surrounding environment
Samsung Biologics ishoping to create a “super gap,” which other competitors worldwide simply cannotbridge, with its latest deal to buy block 11 in Songdo. The goal is to buildfour more factories in block 11 and at least one production campus in block 5.Should everything proceed as planned, Samsung Biologics will establish itselfas the undisputed no. 1 CDMO in the biopharmaceutical sector. The total projectcost is expected to be around KRW 7 trillion.
Samsung Biologics is alsoplanning to promote an industry-wide initiative for venture corporations andSMEs in the biopharmaceutical field. During the first phase, the company isexpected to build an industry incubator facility where venture corporations andSMEs can move in and get the support they need for R&D andcommercialization. Samsung Biologics will offer other support in the form ofconsulting 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. Thegoal 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 jobsthroughout its life.
CEO John Rim said, “Iwould like to express my sincere gratitude to the Ministry of Trade, Industryand Energy and the Incheon Metropolitan City Government for creating theconditions for Samsung Biologics to make preemptive and bold investments.Samsung Biologics promises to become a company that can lead the globalbiopharmaceutical industry and grow together with the local region by executingits investment plan with minimal setbacks.”