Lotte Biologics said it has signed a four-way memorandum of understanding (MOU) with Lotte Holdings, Incheon Metropolitan City, and the Incheon Free Economic Zone Authority (IFEZA) to establish its biopharmaceutical production facility in Songdo.

The signing ceremony, held at the IFEZ headquarters on Tuesday, was attended by Lotte Biologics CEO Richard Lee, Lotte Corp. President Lee Hoon-ki, Incheon Mayor Yoo Jeong-bok, and IFEZA Commissioner Kim Jin-yong.

Under the MOU, the four parties will expedite the construction of Lotte Biologics' mega plant and revitalize the Songdo Bio Cluster.

Incheon Metropolitan City and IFEZA will actively cooperate in the administrative procedures for the establishment and operation of the mega-plant, while Lotte Biologics will actively cooperate in the preparations necessary to secure a site and begin construction of the facility within the year.

Also, Lotte Corp., as a shareholder of Lotte Biologics, will contribute to the successful execution of the project.

The MOU comes after Lotte Biologics announced its plans to build three mega-plants in Korea with a total capacity of 360,000 liters of antibody medicines by 2030 during the J.P. Morgan Healthcare Conference in January.

The company submitted a letter of intent to the IFEZA earlier this year.

Each plant will produce 120,000 liters of antibody medicines and include small-scale incubators and finished drug facilities for the production of clinical materials.

In January, the company also unveiled its plans to establish a Bio-Venture Initiative at its mega-plant complex to provide facilities for bio-venture companies and provide a venue for technology development cooperation.

With the MOU, the company expects to quickly and smoothly execute land sales contracts for the construction of its domestic mega-plant, which will lead to the revitalization of the Songdo Bio Cluster and employment creation in the Incheon area, contributing to the development of the local community.

"This agreement signifies that Incheon Metropolitan City and the IFEZA have responded favorably to Lotte Biologics' intention to locate in Songdo," CEO Lee said.

The company will actively cooperate with Incheon Metropolitan City and the IFEZA to ensure that the land purchase and sale agreement is executed as soon as possible, with the goal of starting construction of the mega plant within the year, Lee added.

Incheon Mayor Yoo Jeong-bok also said, "Lotte Biologics' investment further solidifies Incheon's status as a superior bio city, and the city will continue to attract investments and foster industries in high-tech sectors such as bio to make Incheon the centerpiece of Korea's economic renaissance."

IFEZA Commissioner Kim agreed.

"Today's signing of the MOU is a prime example of the Songdo Bio Cluster's global competitiveness and unlimited potential," Kim said. "We will do our best to support Lotte Biologics' investment in the facility."