○ On July 3, Lotte Biologics held a groundbreaking ceremony for its bio campus in Songdo International City, Incheon, marking the official start of Lotte Group's ambitious bio-business development. The event was attended by notable figures including Lotte Group Chairman Shin Dong-bin, Executive Vice President Shin Yoo-yeol, Lotte Biologics CEO Lee Won-jik, Incheon Mayor Yoo Jeong-bok, First Vice Minister of Trade, Industry and Energy Kang Kyung-sung, and Second Vice Minister of Health and Welfare Park Min-soo.
○ Lotte Biologics plans to invest approximately 4.6 trillion won by 2030 to secure global-level biopharmaceutical manufacturing competitiveness. The Songdo Bio Campus, with a total floor area of 202,285 square meters, will house three biopharmaceutical production plants with a combined capacity of 360,000 liters. The first plant is scheduled to commence operations in January 2027, with Lotte Engineering & Construction responsible for its design and construction.
○ In December 2022, Lotte Biologics entered the biopharmaceutical Contract Development and Manufacturing Organization (CDMO) market by acquiring the Syracuse plant of American pharmaceutical company Bristol-Myers Squibb (BMS). The Syracuse plant currently has a production capacity of approximately 40,000 liters. Once the Songdo campus is completed by 2030, the production capacity will increase to 400,000 liters.
○ Lotte Biologics aims to achieve 1.5 trillion won in sales by 2030. CEO Lee Won-jik stated, "Lotte plans to challenge the top 10 based on sales, not production scale," and added, "We will develop biopharmaceuticals with the best technology and quality to set a new standard for K-Bio in the global market."
○ The biopharmaceutical industry involves the development and manufacturing of drugs derived from biological sources, known for its high entry barriers due to the need for advanced technology, stringent regulatory requirements, and significant capital investment. The CDMO market is highly competitive and
requires substantial expertise and infrastructure to meet global standards.
○ Songdo International City, a modern, planned city in Incheon, South Korea, is known for its advanced infrastructure and as a hub for biotechnology and international business. It is part of the Incheon Free Economic Zone (IFEZ), which aims to attract foreign investment and foster economic growth.
○ Lotte Biologics' acquisition of the BMS Syracuse plant in December 2022 marked its entry into the biopharmaceutical CDMO market. This acquisition is a critical step in expanding Lotte Biologics' production capacity and capabilities. The scale of the investment in the Songdo Bio Campus reflects the company's commitment to becoming a major player in the global CDMO market.