Production starts at new SK Biotek factory in Sejong

SK Biotek's factory at the Myeonghak industrial complex in Sejong [SK INC.]

SK Biotek, a manufacturing subsidiary of SK Pharmteco, began operation of a newly built factory in Sejong, SK Inc. said Tuesday.

SK Pharmteco, based in California, is a contract development and manufacturing organization (CDMO) wholly owned by SK Inc.
Located at the Myeonghak industrial complex in Sejong, the new factory, called M3, can produce 150 tons of pharmaceutical ingredients a year. The building of the M3 factory cost 56 billion won ($39 million) and took two years. It was completed in September.

With the addition of that factory, the total production volume of SK Biotek’s Sejong complex expanded from 190 cubic meters to 290 cubic meters.

SK Inc. forecasts that yearly sales of SK Biotek will rise from last year’s 150 billion won to 220 billion won thanks to the expansion.

SK Biotek exports high-value-added pharmaceutical ingredients for drugs for diabetes, gastroesophageal reflux disease, and central nervous system problems to the United States, Japan and European countries.

“SK Biotek has been continuously growing by gaining trust from global pharmaceutical companies based on our differentiated technologies and quality control capability,” said Hwang Keun-Joo, SK Biotek CEO.

“Production capacity will be expanded to 400 cubic meters when the construction of the M4 factory is completed by the latter half of next year, and we will continue to grow to become the leading global CDMO.”

SK Pharmteco, SK Biotek’s parent company, reported 830 billion won in revenue last year, ranking fifth in the global CDMO market. The company has production sites in the U.S., Ireland and France, and acquired 70 percent of Yposkesi, a French CDMO focusing on cell and gene therapies in March 2021.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]