HLB Pharmaceutical Breaks Ground on New Hyangnam Plant, "Securing Annual Capacity of 700 Million Tablets"

55 Billion Won Investment... Full-Scale Operations to Begin in 2029
"Targeting 1 Trillion Won in Sales by 2036"

HLB Pharmaceutical is moving to expand its production infrastructure.

HLB Pharmaceutical said on November 12 that it held a groundbreaking ceremony for its new Hyangnam plant in Hyangnam-eup, Hwaseong, Gyeonggi Province. Attendees included Jin Yanggon, chairman of the HLB Group Board; Park Jaehyung, CEO of HLB Pharmaceutical; Park Youngmin, head of the Korea Drug Development Fund; and Jo Yongjun, chairman of the Korea Pharmaceutical Cooperative.

From left: Moon Jeonghwan, Vice Chairman of HLB Group; Lim Changyun, Vice Chairman of HLB Group; Jin Yanggon, Chairman of HLB Group; Park Jaehyung, CEO of HLB Pharmaceutical; and Park Youngmin, Director of the National New Drug Development Project. HLB Group

The new Hyangnam plant will be built with an investment of 55 billion won on a site of approximately 31,244 square meters, with a total floor area of approximately 11,931 square meters. The facility will have one basement level and three floors above ground, and will be equipped with automated production lines and manufacturing facilities that meet Good Manufacturing Practice (GMP) standards.

The target production capacity is approximately 700 million tablets per year, about three times the annual capacity of the existing Namyangju plant, which produces approximately 250 million tablets. HLB Pharmaceutical plans to complete construction and obtain approval for use of the building by the end of 2027. After completing related procedures, including receiving GMP compliance approval, the company plans to gradually transfer the Namyangju plant's manufacturing operations starting in 2029.

A key purpose of the new plant is to strengthen cost competitiveness by bringing outsourced production in-house. The company aims to reduce contract manufacturing costs and improve production efficiency by increasing the share of medicines it produces itself, rather than relying on external manufacturers. It also plans to secure the production capacity needed to launch new products and expand its contract manufacturing organization (CMO) business.

The investment is part of a mid- to long-term effort to expand production capacity in response to sustained sales growth. HLB Pharmaceutical posted sales of 205.6 billion won last year, surpassing 200 billion won in annual sales for the first time. Sales in the first half of this year also reached 127.9 billion won, marking the company's highest-ever half-year result.

The new Hyangnam plant will also serve as a key production hub for the HLB Group's pharmaceutical business. The group is also considering expanding its manufacturing infrastructure in connection with adjacent sites.

HLB Pharmaceutical said it aims to reach 1 trillion won in sales by 2036 and become one of South Korea's top 10 pharmaceutical companies by leveraging expanded production capacity and improved profitability to strengthen its prescription drug business, develop improved drugs, introduce new products, and pursue strategic mergers and acquisitions (M&A).

In 2027-2028, the company will focus on improving the profitability of its pharmaceutical business, and in 2029-2031, it will pursue the development of improved drugs and expand sales to general hospitals. It plans to broaden its product portfolio to include oncology, urology, and rare diseases, and secure new growth drivers through the introduction of major products and M&A.

Park Jaehyung, CEO of HLB Pharmaceutical, said, "The new Hyangnam plant is a key investment to meet rapidly growing demand for medicines and strengthen our manufacturing competitiveness. Building on a stable production base, we will expand the production of high-value-added medicines and lay the foundation for growth toward our goals of reaching 1 trillion won in sales by 2036 and becoming one of South Korea's top 10 pharmaceutical companies."

This content was produced with the assistance of AI translation services.