SK pharmteco, a contract development and manufacturing organization (CDMO) subsidiary of SK Group, has announced plans to invest $260 million (346.6 billion won) in a new production facility for small molecules and peptides in Sejong, Korea.

SK pharmteco, headquartered in California in the U.S,  operates production bases in France, Ireland, and the U.S.

The new facility, slated to begin full-scale production in 2026, will be SK pharmteco's fifth production base in Korea.

The company said the expansion will serve as a cornerstone for its global business growth as the annual production capacity of the new plant is expected to reach several dozen tons.

The new complex will feature cutting-edge peptide R&D facilities and current good manufacturing practice (cGMP)-compliant equipment, as well as facilities for pilot production of peptides.

Additionally, the construction will include shell architecture for a potential sixth plant, allowing for quick expansion if needed in the future.

"This new facility will increase our production capacity in Asia,” said SK pharmteco CEO Joerg Ahlgrimm. “By investing in this new facility, we’re increasing our capacity in Asia in line with our global expansion strategy and solidifying our position as a trusted partner for companies developing groundbreaking treatments, demonstrating our adaptability and reliability in a rapidly changing industry.”

SK pharmteco also announced plans to hire more than 300 new employees for the expanded facility.

Industry sources expect that SK biotek, a subsidiary of SK pharmteco, will manage the operation of the new facility. This speculation is based on SK biotek's August public filing which said the company plans to acquire a 314.7 billion won ($235.9 million) production plant for pharmaceutical ingredients by March 2027.