Korea’s Samyang opens $22 mn surgical suture plant in Hungary

Samyang Holdings Corp., the world’s top biodegradable suture yarn manufacturer, completed the construction of a 28 billion won ($21.9 million) factory for the surgical materials in Hungary to cement its dominant position in Europe.

The holding company of South Korea’s food and chemicals producer Samyang Group on Tuesday held an opening ceremony for the plant located in Gödöllő, about 30 kilometers (19 miles) northeast the outskirts of Budapest.

Samyang Holdings said the plant is expected to manufacture up to 100,000 km of biodegradable suture yarn a year in 2025 when the first medical device plant in the country built by a South Korean company is equipped with all facilities.

The company aims to double its production capacity with additional investments.

PRODUCTION, LOGISTICS HUB IN EUROPE

Biodegradable sutures make up some 45% of sales of Samyang Holdings’ biopharmaceutical unit with more than 90% of its revenue generated from overseas markets as the company supplies about $50 million worth of biodegradable suture yarn to 190 companies in 45 countries.

Europe is Samyang Holdings’ key market, which accounts for about 30% of its total biodegradable suture exports. The company plans to use Hungary – given its proximity to major markets such as Germany, France, Spain and Italy – as a production and logistics hub in the region.

“We aim to strengthen our position in Europe, utilizing the Hungarian plant as a bridgehead, and expand business portfolios to include various products such as devices for biosurgery and cosmetic surgeries,” said Samyang Holdings Chairman Kim Yoon in a statement.

The company has already released new products such as antibacterial sutures that reduce the risk of infection during surgeries.

Samyang Group 2021 unveiled its ambition to manage 30% of its total assets overseas by 2025 while fostering nutrition, medical and eco-friendly materials as its core future business.

Write to Dae-Kyu Ahn at powerzanic@hankyung.com
 
Jongwoo Cheon edited this article.