SK Pharmteco to invest $260 mn in new peptide factory in S. Korea
Dae-Kyu Ahn
Oct 02, 2024 (Gmt+09:00)
SK Pharmteco, the contract development and manufacturing organization (CDMO) of South Korea's SK Inc., said on Tuesday that it plans to invest $260 million (340 billion won) to construct a peptide and low-molecular-weight drug production plant in Sejong City, South Korea.
Peptides, composed of amino acids, are increasingly being developed as treatments for various diseases, including obesity.
The Sejong facility will be SK Pharmteco’s fifth plant in South Korea, covering 12,600 square meters.
It is expected to commence operations in late 2026, featuring eight production lines and a research and development unit focused on peptides. The company plans to hire 300 new employees to support this expansion.
The investment also includes the construction of the external structure, or shell, for a potential sixth domestic manufacturing plant, allowing for future capacity expansion if necessary, according to SK Pharmteco.
SK Biotek, a subsidiary of SK Pharmteco, is expected to operate the new facility.
On August 30, SK Biotek announced it would acquire a 314.7 billion won facility for producing active pharmaceutical ingredients and intermediates by March 2027.
SK Pharmteco stated that the investment is aimed at meeting the growing demand for high-quality peptides and low-molecular-weight compounds, which are essential components in innovative therapies.