Daily Management Review

Samsung to build the world's largest pharmaceutical plant for $2B


South Korea's Samsung continues to expand its pharmaceutical business, investing nearly $ 2 billion in a drug manufacturing plant that is set to become the largest of its kind in the world when completed in 2022.

According to The Wall Street Journal, the company is betting on the further growth of the market for biological drugs due to changes in the industry associated with the coronavirus pandemic.

The plant, named Super Plant, will be the fourth facility of Samsung BioLogics Co., Samsung's biopharmaceutical business. Its area will be approximately 230 thousand square meters. Thus, it will be more than three of the existing enterprises of the company combined, and even slightly larger in size than the Parisian Louvre.

Samsung's goal is to take advantage of the unprecedented growth in demand fueled by the COVID-19 pandemic, given the upward trend in global drug production, the WSJ notes.

Samsung BioLogics manufactures biologics for some of the world's largest pharmaceutical companies, including Bristol-Myers Squibb Co., SP and Roche Holding Ltd.

The head of the division, Tae-Han Kim, told the publication that it was originally planned for the new plant to be much smaller, but the coronavirus pandemic has created a new category of products - treatments for COVID-19, prompting drug developers and national governments to seek new sources of production.

"COVID-19 gives us more opportunities than a crisis," said Tae-Han Kim, who has been leading Samsung BioLogics since 2011 and has reportedly pushed the idea of building a plant to Samsung's leadership.

source: wsj.com