November 28, 2024

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A picture shows the architectural design of SK Plasma's blood products manufacturing facility that will be built near Jakarta, Indonesia. (SK Plasma)

SK Plasma, a blood products unit of SK Discovery, announced Wednesday that the company has clinched a deal to build a blood products plant in Indonesia, which is expected to be worth around $250 million.

SK Plasma has received final approval from the Indonesian Health Ministry for construction of a plasma fractionation facility, which will produce products like immune globulin and albumin, used for patients with immunodeficiency diseases and hemophilia.

The plant will be capable of producing 1 million liters of blood products per year. This will ensure a stable supply of blood products in Indonesia, SK Plasma predicted.

The population of Indonesia is close to 300 million, but the country is currently 100 percent dependent on imports of blood products.

SK Plasma said, “the company will begin construction of the plant as early as the first half this year, on a site near Jakarta.” The company added that the location has been decided, but that the real estate purchase deal has not yet been signed.

Given that the construction of a blood products manufacturing facility usually takes two years and an additional one year to receive a good manufacturing practice certificate, the company will be able to start full operation of the plant around three years from now, an industry source said.

In the meantime, SK Plasma will also set up a joint venture in Indonesia, which will oversee plant operation, as well as production and sales of products made at the plant.

The company expects the joint venture’s annual sales to reach 300 billion won ($226 million), which will make the joint venture one of the top five pharmaceutical companies in Indonesia.

“By transferring technologies relating to blood products and installing a manufacturing facility to a country that has no related infrastructure, SK Plasma seeks to create new business opportunities and reach the company’s ESG goals,” SK Plasma CEO Kim Seung-joo said.

By Shim Woo-hyun (ws@heraldcorp.com)