- SK bioscience invested about 150 billion KRW in the expansion of existing vaccine manufacturing plants used for cell culture, genetic recombination, etc. as well as the establishment of new vaccine platform facilities for materials such as mRNA

- The additional purchase of a site approximately 99,130㎡ in size for factory expansion represents a “Leap to a global vaccine production hub”

- North Gyeongsang Province and Andong pledged administrative cooperation and financial support in this public-private partnership to foster the vaccine industry

Jaeyong Ahn, CEO of SK bioscience (center), Chul-woo Lee, the governor of North Gyeongsang Province (left), and Young-se Kwon, mayor of Andong, are signing an MOU for expansion of the L HOUSE and the purchase of the expansion site.

SK bioscience announced on the 21st that the company has signed a Memorandum of Understanding (MOU) with Andong (Mayor: Young-se Kwon) and North Gyeongsang Province (Governor: Cheol-woo Lee) to invest in expanding plants and sites at L HOUSE, its vaccine plant located in Andong, North Gyeongsang Province.

This MOU was promoted to secure additional sites for plants and to expand vaccine facilities to reflect the increased demand for vaccines produced by SK bioscience, which has grown into a global company by supplying COVID-19 vaccines around the world.

According to the MOU, SK bioscience will invest about 150 billion KRW by 2024 to expand the manufacturing facilities of L HOUSE, which has the latest vaccine production facilities for processes such as cell culture, bacterial culture, gene recombination, and protein conjugation, and build new platform facilities for handling materials including mRNA and next-generation viral vectors.

Also, the company will expand the plant by about 161,000 m2 by purchasing an additional site of about 99,130 m2 within the Gyeongbuk Bio 2nd General Industrial Complex, which is being built in Maegok-ri, Pungsan-eup, Andong, near the existing L-House site.

North Gyeongsang Province and Andong will actively support SK bioscience´s investment to ensure success.

In particular, Andong decided to actively implement the city´s project for promoting employment, which calls for fostering professional workers capable of contributing to the development of the industry at the expanded vaccine plant. Companies conducting training and exercises for personnel will be partially supported by local governments for personnel expenses.

With this plant expansion, SK bioscience plans to expand its business and solidify its leading position within the Korean market as well as establish itself as a hub for global vaccine production.

SK bioscience expects L HOUSE´s COVID-19 vaccine manufacturing facilities to gain momentum in its expansion into global business since it recently acquired the EU-Good Manufacturing Practice (GMP) certificate. The company’s flu and chickenpox vaccines have also been certified by the World Health Organization (WHO)’s Prequalification (PQ) Program.

Cheol-woo Lee, the governor of North Gyeongsang Province, said, “I am proud that a global vaccine company continues to invest and promote employment in our region. With SK bioscience, we will nurture the northern regions of Gyeongbuk, including Andong, as outposts for the vaccine industry, while concentrating on job creation so that no young people leave the region due to a lack of employment opportunities.”

Young-se Kwon, Andong Mayor, said, “The best welfare is to create quality jobs. We will support SK bioscience in cementing its position as a global vaccine leader so that Andong can join the top 5 vaccine powerhouses.”

Jaeyong Ahn, CEO of SK bioscience, said, “For the Korean vaccine industry to become a hub for global vaccine production, the national government, local governments, and companies need to cooperate in creating a strategy for growth, and this MOU is a good example of that. We will make Andong the center of global vaccine production through L HOUSE.”