Lotte Biologics expands capacity with new 360,000-liter Songdo plant

Industry

Published: 03 Jul. 2024, 16:50

Lotte Biologics expands capacity with new 360,000-liter Songdo plant

Lotte Chairman Shin Dong-bin, sixth from left, poses for a photo during a groundbreaking ceremony for the first plant on Lotte Biologics' Songdo Bio Campus in Incheon, along with other attendees including Lotte Biologics CEO Richard Lee, third from right, on Wednesday. [LOTTE BIOLOGICS]

Lotte Biologics broke ground for its 360,000-liter (95,102-gallon) production site in Songdo, Incheon, as part of a $3 billion investment initiative that aims to make the company one of the world's 10 largest biopharmaceutical contract manufacturers by 2030.

The contract development and manufacturing organization (CDMO) held a groundbreaking ceremony for the first production plant of its Songdo Bio Campus on Wednesday. Lotte Chairman Shin Dong-bin, Lotte Biologics CEO Richard Lee and Incheon Mayor Yoo Jeong-bok in attendance.

The Songdo Bio Campus, measuring 202,285 square meters (50 acres), includes three 120,000-liter plants, which will bring Lotte Biologics' total manufacturing capacity to 400,000 liters by 2030.

Lotte Biologics has a 40,000-liter production site in Syracuse, New York, which it acquired from Bristol-Myers Squibb for $160 million in 2022. The CDMO is currently setting up a production facility for antibody-drug conjugates, or ADC, at the U.S. plant. ADC production will begin next year.

Construction of the first plant, which is being built by Lotte Engineering & Construction, is scheduled to be complete by the first quarter of 2026 with commercial-scale operation to begin in January 2027. Also to be part of the complex is the Bio-Venture Initiative, designed to support biotech startups in the country.

Lotte Group has emphasized the CDMO business as a future growth engine in recent years as the conglomerate looks to expand beyond its current focus on the food and retail sectors.

“I am confident that Lotte Biologics’ journey, which begins here in Songdo, will not only drive the future growth of Lotte Group, but also become the backbone of Korea’s bio sector,” Shin said in his remarks during the ceremony.

Prime Minister Han Duck-soo, who delivered his speech through a video message, said, “We expect Lotte Group’s bold investments to significantly boost the competitive edge of the Korean biopharmaceutical industry amid accelerating global competition in the bio sector.”

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