New manufacturing site expected to operate at full scale by 2029 with annual production capacity of 700 million tablets
HLB Pharmaceutical broke ground on a new pharmaceutical manufacturing plant in Hwaseong, Gyeonggi Province, on Thursday, launching a 55 billion won ($41.4 million) investment aimed at nearly tripling its production capacity as it pursues 1 trillion won in annual sales by 2036.
"The production capacity at our Namyangju plant is approximately 250 million tablets a year," Park Jae-hyung, CEO of HLB Pharmaceutical, said during the groundbreaking ceremony.
"It has been difficult to handle the increasing demand with (that capacity), so we have been relying a lot on external production. The new Hyangnam plant, which breaks ground today, is our answer to this task."
According to HLB, the new plant is expected to have an annual production capacity of about 700 million tablets. The facility, which will house manufacturing facilities and auxiliary buildings with one basement level and three floors above ground, will cover 11,931 square meters on a 31,244-square-meter site.
Construction is scheduled for completion by late 2027 with building-use approval targeted for the end of that year.
Following regulatory procedures, including Good Manufacturing Practice certification, HLB Pharmaceutical plans to gradually transfer manufacturing operations from Namyangju and begin full-scale production at the new site in 2029.
The investment comes as the pharmaceutical company seeks to bring more production in-house, reduce reliance on external contract manufacturers and improve cost advantages.
HLB Pharmaceutical underlined that greater manufacturing capacity is expected to support new product launches and expansion of its contract manufacturing organization, or CMO, business.
HLB Pharmaceutical reported 205.6 billion won in sales last year, surpassing the 200 billion won mark for the first time. It continued its growth momentum in the first half of this year, posting a record 127.9 billion won in sales from January to June.
The Hyangnam plant is expected to serve as a key manufacturing hub for HLB Group's pharmaceutical business, supporting production of new drugs across the conglomerate. To this end, HLB Pharmaceutical said it is considering further expansion of its manufacturing infrastructure in connection with adjacent land.
The drugmaker laid out the company's 10-year roadmap to become one of Korea's 10 largest pharmaceutical companies by 2036 and reach annual revenue of 1 trillion won.
Its broader growth strategy includes strengthening its prescription drug business, developing improved versions of existing drugs, introducing new products and pursuing strategic mergers and acquisitions.
Between 2027 and 2028, the company said it plans to focus on improving profitability. From 2029 to 2031, it intends to strengthen its prescription drug portfolio through improved-drug development and expanded sales operations at general hospitals. It subsequently seeks to broaden its presence in oncology, urology and rare diseases while pursuing the introduction of blockbuster products and strategic acquisitions.
"Going beyond developing new cancer drugs, we will take a leap into becoming a company that stably supplies good drugs wanted by patients and medical staff to the world," HLB Group Chairman Jin Yang-gon said.
"Our corporate mission of 'Human Life Better' will be more concretely materialized at the Hyangnam plant, which will become a production site that can be trusted by any standards with top-level quality and cutting-edge equipment."
hwkan@heraldcorp.com
