Foreign bio raw and subsidiary materials companies to invest 400 billion won in Korea

Seoul [South Korea], November 4 (ANI/Global Economic): Global biopharmaceutical raw and subsidiary material suppliers are announcing investment plans in Korea. As companies convert to 'local production' strategy due to the shortage of bio-materials, components, and equipment during the pandemic, Korea is emerging as an important production base.
Prime Minister Kim Boo-kyum held the second meeting of global vaccine hub preparatory committee on the 2nd and checked the progress of the 'K-Global Vaccine Hub' project.
On this day, German bio pharmaceutical equipment supplier Sartorius signed a memorandum of understanding (MOU) with the Ministry of Trade, Industry and Energy, the Ministry of Health, and Incheon City to invest $300 million (about 350 billion won) in Songdo, Incheon for three years.
Previously, Sartorius submitted a letter of intent (LOI) to invest $100 million in Incheon in November last year. It has been expanded to $300 million under the MOU this time. Sartorius is planning to produce disposable culture bags (disposable container to culture cells and virus), culture vessels (liquid substance needed to grow cells), sterilizing filtrations (filter that removes impurities and harmful bacteria from medicines) and membranes (thin layer of cell that filters out certain substances and separates the mixture) in Korea and supply them to the global market. It is aiming to make Korea as a production hub following North America and Europe.
"Sartorius is planning to construct a production complex that can produce all the solutions," said an official from the Ministry of Trade, Industry and Energy. "It will invest for three years from 2022 to 2024."
Global bioscience company Cytiva in the U.S. also officially announced its plan to establish a cell culture bag production facility in Korea at the 'KORUS Global Vaccine Partnership' signing ceremony in September. It will invest $52.5 million (about 62.1 billion won) between 2022 and 2024.
The main bio material to be produced in Korea by Cytiva is a disposable culture bag that suffered from supply disruptions during the pandemic.
Such investment expansion is because global suppliers turned to production localization strategy due to the supply shortage of bio raw and subsidiary materials since COVID-19. Currently, biopharmaceutical raw materials production facilities are concentrated in the U.S. and Europe. Some Korean companies took nearly a year to receive disposable bags that were essential for vaccine manufacturing during the pandemic.
"As it is difficult to respond to global demand with production facilities in the U.S. and Europe during the pandemic, many global companies plan to set up production sites in Asia," said an official from the Ministry of Industry. "The Korean government is also actively preparing to become a global vaccine hub."
Cytiva has set up a localization strategy to 'produce in Asia and supply to Asia.' Cytiva made a final investment decision in Korea after bidding with China and Singapore.
The Korean vaccine and biopharmaceutical market is expected to have high growth potential. (ANI/Global Economic)