Samsung Biologics, a contract development and manufacturing organization (CDMO), will begin construction of a fifth plant as part of its strategic expansion in response to increased market demand. The company plans to begin construction in the first half of 2023 and commence operations in 2025.

As part of Samsung Biologics’ second Bio Campus, Plant 5 will have manufacturing capacity of 180,000 liters, expanding the company’s total site capacity to 784,000 liters upon its completion.

Samsung Biologics will invest over South Korean Won (KRW) 1.9 trillion in the facility, fulfilling its strategic commitment to continuous capacity expansion.

“Given the continuing increase in the demand for outsourced manufacturing of biopharmaceuticals, we are proactively making this investment in alignment with our growth strategy to further strengthen our standing as a leading CDMO,” said John Rim, President and CEO of Samsung Biologics. “The new facility will enable us to provide our customers with even greater innovation and services that will increase speed to market and flexibility.”

The plant is expected to further maximize operational efficiency, allowing the company to leverage existing capabilities, expertise and technologies acquired through its experience with Plants 1 through 4, while introducing advanced digitalization and sustainability features.

Samsung Biologics purchased 360,000 square meters of land in July 2022 for its second Bio Campus, which will house additional large-scale plants and an open innovation center. The company will be investing KRW 7.5 trillion in its second Bio Campus.

The company’s existing Plants 1 through 3 are under near-full utilization and its Plant 4, which started partial operations in October last year, is expected to commence full operations by mid-year.

In line with the company’s expansion plans, Samsung Biologics will also enhance its presence in the U.S. with the opening of a regional office in New Jersey next week. The new office will streamline communication and enable the company to work in closer proximity to clients based in the U.S. and Europe.

“Our increased U.S. presence will allow us to provide support for clients with even greater agility and engage the broader biotech industry more than ever,” said Rim.

Rim, who was recently elected as chair of the board of directors, will helm the company’s long-term growth strategy while expanding its leadership position as a global CDMO.