Annual production capacity of 700 million tablets secured… 2.8 times the scale of the existing Namyangju plant
Strategy to reduce outsourcing costs and expand CMO business… Targeting 1 trillion won in revenue by 2036
HLB Pharmaceutical is investing 55 billion won to construct a new pharmaceutical plant capable of producing 700 million tablets annually. The company plans to expand its production capacity by approximately 2.8 times compared to its existing Namyangju plant and intends to begin a phased relocation of manufacturing operations starting in 2029.
HLB Pharmaceutical announced on the 12th that it held a groundbreaking ceremony for the new Hyangnam plant in Hyangnam-eup, Hwaseong-si, Gyeonggi-do.
The new facility will be built on a site of approximately 31,244 square meters, with a total floor area of about 11,931 square meters. It will feature a manufacturing plant and auxiliary facilities compliant with Good Manufacturing Practice (GMP) standards, spanning from one basement level to three floors above ground. The company plans to enhance production efficiency and quality competitiveness by introducing automated production equipment and upgrading its production and quality control systems.
The target annual production capacity for the new plant is approximately 700 million tablets, roughly 2.8 times that of the existing Namyangju plant (250 million tablets per year). HLB Pharmaceutical aims to complete construction by the end of 2027 and, following necessary procedures such as GMP certification, plans to transition manufacturing functions from the Namyangju plant in stages starting in 2029.
This investment is intended to address rising demand for pharmaceuticals and secure a mid-to-long-term production base. HLB Pharmaceutical surpassed 200 billion won in annual revenue for the first time last year, recording 205.6 billion won. It also achieved its highest-ever first-half performance this year, with revenue reaching 127.9 billion won.
Once the new plant is operational, the company plans to increase the proportion of in-house production for pharmaceuticals previously outsourced to third parties. This strategy is designed to reduce outsourcing costs and improve cost competitiveness. The company also aims to secure the production capacity necessary for new product launches and the expansion of its Contract Manufacturing Organization (CMO) business.
The Hyangnam plant will serve as a core production hub for the HLB Group's pharmaceutical business. It will support group-wide new product manufacturing and business expansion, with the company also considering further long-term manufacturing infrastructure development in adjacent areas.
Leveraging the new plant, HLB Pharmaceutical aims to reach 1 trillion won in revenue by 2036 and enter the ranks of the top 10 domestic pharmaceutical companies. To achieve this, the company plans to strengthen its prescription drug business and the development of improved new drugs, while expanding its product portfolio in oncology, urology, and rare diseases, alongside strategic mergers and acquisitions (M&A).
Park Jae-hyung, CEO of HLB Pharmaceutical, stated, "The Hyangnam plant is a key investment to respond to surging pharmaceutical demand and strengthen our manufacturing competitiveness. Based on a stable production foundation, we will expand the production of high-value-added pharmaceuticals and solidify the growth base to achieve 1 trillion won in revenue by 2036 and leap into the top 10 domestic pharmaceutical firms."
