Celltrion to expand new plant for drug products

South Korean biopharmaceutical firm Celltrion Inc. announced on Tuesday that it plans to enlarge its finished pharmaceuticals manufacturing facility at the Songdo campus in Incheon. The expansion aims to proactively address rising sales demand.

Scheduled for completion by early 2026 with production set to begin in 2027, the new factory will boast an annual output capacity of around 8 million liquid vials. The company has earmarked about 126 billion won ($95 million) for this investment.

Celltrion anticipates that the expanded facility will not only bolster the stability of its product supply but also substantially reduce costs, particularly as revenues grow. The company estimates a cost-saving benefit of about 30% compared to the unit costs of products currently produced under contract manufacturing agreements.

The new plant will work in tandem with existing production lines, thereby creating a more concentrated and efficient manufacturing system.

"The purpose of the new facility is to internalize more of our production processes, which will reduce costs and enable us to respond more effectively and swiftly to a growing demand for our existing and pipeline products," a Celltrion source said.

The company added that should the surge in sales continue, it will contemplate further expansions to cement its sustainable growth trajectory.

Write to Yoo-Rim Kim at youforest@hankyung.com