Celltrion wins nod for new Songdo plant to reduce costs and boost supply

Celltrion has received approval to begin construction on a new drug product (DP) manufacturing plant in Songdo, a move aimed at expanding production capacity and strengthening cost competitiveness in the global pharmaceutical market. 

With regulatory approvals secured as of Friday, the company said construction will begin immediately, targeting completion by the first half of 2025 and commercial production by 2027.

The facility, located near Celltrion’s existing Plant 1 in the Incheon Free Economic Zone (IFEZ), will manufacture key biopharmaceuticals, including Truxima (rituximab) and Vegzelma (bevacizumab), as well as newly approved treatments such as Eydenzelt (aflibercept), Steqeyma (ustekinumab), and Avtozma (tocilizumab).

Once operational, the plant will triple Celltrion’s liquid vial production capacity from 4 million to 12 million units annually.

Celltrion expects the facility to reduce production costs by about 30 percent compared to outsourcing, a company official said. The shift to in-house manufacturing is aimed at improving price competitiveness in international bidding markets and increasing sales.

By integrating DP production with existing lines at Plant 2, the official said, the company will have greater flexibility in scheduling, shorten product release timelines, and optimize workforce allocation. “This expansion allows us to take greater control over costs and supply chain efficiency,” the official added.

Celltrion’s expansion follows a two-pronged supply strategy. For markets outside the U.S., lower production costs will make its biosimilars more competitive in price-sensitive regions. In the U.S., the company will continue leveraging contract manufacturing organizations (CMO) partnerships to navigate potential tariff risks and maintain stable operations.

By integrating DP manufacturing with its existing drug substance (DS) facilities—Plants 1, 2, and 3, which collectively provide a 250,000-liter production capacity—Celltrion aims to improve efficiency and accelerate product release. 

The new facility will also feature advanced isolator technology to minimize contamination risks and automated production lines to enhance operational efficiency.