[Photo provided by Samsung Biologics Co.]

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Samsung Biologics Co., already the world’s largest contract drug manufacturer, announced leapfrogging expansion plan to add a fourth plant in its campus at Songdo, Incheon, to nearly double its capacity as early as 2023.

The company said in a regulatory filing that it will invest 1.74 trillion won ($1.5 billion), more than doubling 850 billion won spent on the largest-yet third plant that was completed in 2017 and close to total 2.1 trillion won spent over the nine years in business to build the fourth facility that would outsize all three existing manufacturing houses.

Once the new plant with capacity of 256,000 liters becomes operational in 2023 after opening in late 2022, Samsung Biologics will be capable of turning out 620,000 liters, enough to cover 30 percent of global demand.

Shares of Samsung Biologics jumped on the news. They closed Tuesday 4.28 percent higher at 804,000 won.

Samsung Biologics, being groomed as the next chip-like flagship by Samsung Group, said the expansion plan is part of a long-term strategy to boost operational efficiency and enhance development and manufacturing capabilities amid growing bio-manufacturing demands.

[Photo provided by Samsung Biologics Co.]

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Samsung Biologics said it will provide diverse manufacturing services to support the needs of new and existing customers. It will also introduce real-time production schedule simulation by adopting automation and latest bio-manufacturing technologies.

“In this continuously evolving climate, we are strategically positioning ourselves to respond to the needs of our global clients who are producing new medicines that are more complex and diverse, and deliver superior client satisfaction,” said CEO Kim Tae-han.

“With the production of plant 4, Samsung Biologics is investing in a total line refinement and addition of new mid- and small-scale facilities to ensure production efficiency and provide top-notch services to raise the bar even further to establish ourselves as the leading global standard.”

Samsung Biologics has secured total 1.8 trillion won worth of orders to produce products for major global pharmaceutical companies in the first half of the year alone, about 2.5 times of last year’s total revenue.

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