Lotte Group Chairman Shin Dong-bin speaks during a groundbreaking ceremony of Lotte Biologics' plant in Songdo, Incheon, Wednesday. Courtesy of Lotte Biologics

Lotte Biologics aims to join the global top 10 in the contract development and manufacturing organization (CDMO) business through its plant in Songdo, Incheon, its CEO Richard Lee said Tuesday.

"(The plant's construction) is the starting point for Lotte Biologics to leap forward as a new standard for K-bio in the global market," Lee said in a press conference held a day before the plant's groundbreaking ceremony in Songdo. "By developing and producing biopharmaceuticals with the best technology and quality, we will solidify our position as a global TOP 10 CDMO."

In March, Lotte Biologics began building its CDMO plant in Songdo. CDMO refers to a business that develops and manufactures drugs for client companies. The company said the Songdo plant will start production in 2027.

"Lotte Biologics was established in 2022 to make (biologics) Lotte Group's core new business, and through a two-track strategy of acquisition and establishment, we acquired the U.S.-based (Bristol Myers Squibb) plant to generate stable revenue from the CDMO business and gradually expand our client base," the CEO said.

Lee added the company aims to reach 1.5 trillion won ($1 billion) in revenue by 2030, which would put it in the global top 10 in terms of revenue.

Richard Lee, CEO of Lotte Biologics, speaks during a press conference at the Lotte Hotel World in Seoul, Tuesday. Korea Times photo by Baek Byung-yeul

Lotte Group Chairman Shin Dong-bin said during the groundbreaking ceremony held Wednesday that its Songdo plant will not only be the future growth engine of Lotte Group, but also the center of Korea's bio industry.

"For the successful creation of the bio cluster in Songdo, Incheon, we will do our utmost to contribute to Korea's leadership in the global bio industry," the chairman said.

Lotte Biologics plans to invest 4.6 trillion won in Songdo by 2030 to build a total of three plants, in addition to the one currently under construction.

"The company's Songdo Bio Campus will have a total floor area of around 200,000 square meters, and we plan to build three biopharmaceutical production plants, each with a capacity of 120,000 liters. When fully operational, the production capacity will reach a total of 400,000 liters, with 360,000 liters in Songdo and 40,000 liters in Syracuse in the U.S.," the company said.

Through strategic alliances with global players, Lotte Biologics will apply world-class production equipment and IT systems at Songdo Bio Campus to maximize plant efficiency and quality levels and prepare for stable production through validation.

In addition, the company plans to create a Bio-Venture Initiative to promote mutual growth with bio venture companies and contribute to the creation of a domestic biotech company ecosystem, the company added.