SK Plasma gets investment from Indonesian fund

South Korea’s SK Plasma on Tuesday said it signed a term sheet, or a nonbinding agreement on the basic terms and conditions of an investment, with the government-owned sovereign wealth fund Indonesia Investment Authority (INA) on major transaction terms for building a blood product plant in the Southeast Asian country.

Launched in November 2020, the INA seeks direct and foreign investment under the goal of streamlining Indonesian infrastructure and contributing to economic development. As the first project between the fund and a South Korean company, this contract will have the INA invest up to $50 million (66.9 billion won) and participate in operations as the No. 2 shareholder.

Blood products are medicines made from blood in which components in blood are fractionated and purified for use in manufacturing pharmaceuticals such as albumin and immunoglobulin. These are essential for treating conditions like shock from excessive bleeding, congenital immunodeficiency disease and hemophilia.

Such products like albumin and immunoglobulin are designated and managed as essential national medicines given their urgent need in a natural disaster.

In March, the Indonesian Ministry of Health approved SK Plasma’s bid to build the plasma fractionation plant. Slated for completion in 2025, the facility will process a million liters of raw plasma per year.

After the plant’s completion, the joint venture will supervise operations, business rights, production and sales. It will supply blood products under Indonesian regulations and help Indonesia’s self-sufficiency in national essential medicines.

“Construction of the blood product plant will be sped up through the Indonesian government’s support and the INA’s participation,” SK Plasma CEO Kim Seung-joo said. “A groundbreaking ceremony at the site will be held this year with leading figures from both countries.”

Write to Young-Ae Lee at 0ae@hankyung.com