Samsung constructing new $2B 'Super Plant' roughly the size of America's largest malls
Samsung Biologics is planning to construct a new ‘Super Plant’ about the size of the biggest shopping malls in the US.
Last month, the company announced that it is expecting to break ground on the manufacturing plant, its fourth overall, sometime before the end of the year. The building, which will cost roughly $2 billion, is expected to encompass 238,000 square meters, or about 2.5 million square feet. That’s the size of all three of its current plants combined and about 90% the area of Minnesota’s Mall of America and Philadelphia’s King of Prussia mall, the country’s two biggest, fully-open malls.
“With the production of Plant 4, our ‘Super Plant,’ Samsung Biologics is investing in a total line refinement and addition of new mid- and small-scale facilities to ensure production efficiency and provide top-notch services to raise the bar even further to establish ourselves as the leading global standard,” CEO Tae Han Kim said in a statement.
Samsung expects to begin manufacturing activities in the second half of 2022.
The new plant will add 256KL to Samsung’s overall manufacturing capacity, bringing the company’s total to 620KL. Samsung is hoping to capitalize on the surge in demand for outsourced manufacturing due to the Covid-19 pandemic, saying it has signed deals worth 2.5 times its 2019 revenue in the first half of this year alone.
Originally, this new plant was supposed to be far smaller, Kim told the Wall Street Journal this week. But seeing how the pandemic created a new product category in Covid-19 treatments, he pushed for a larger expansion as the company is reaching maximum capacity at its current three plants.
Recently, Samsung entered into a $231 million contract with GSK to help produce the British drugmaker’s specialty care drugs, such as the lupus drug Benlysta. The company also makes drugs for Bristol Myers Squibb and the Roche group.
Founded in 2011, Samsung Biologics is a relatively recent venture for the conglomerate known mainly for its smartphones. Over the last several years, it’s been mired in an accounting scandal as the company allegedly inflated its value ahead of its 2016 public listing.
Three execs were jailed last December for destroying evidence related to the probe after South Korean regulators raided an office building and found concealed laptops, computer servers and USB drivers underneath a meeting room floor. According to the Journal, Kim was one of 11 current and former higher-ups indicted on Tuesday for various fraud and market-violation counts. Samsung has denied all wrongdoing in the case.