LG Chem strengthening bioscience business in 2017Madeinkoreablog
LG Chem said Thursday it will strengthen its bioscience business this year, expanding research and development (R&D) investment for synergy with two bio players that the firm acquired last year.
The plan comes after the company took over Dongbu Farm Hannong, a Seoul-based processor of agricultural materials, in January last year, in what it said was a move to expand its presence in the “green biology” industry. The company finalized its acquisition of LG Life Science, Jan. 1 this year, as part of its efforts to turn the pharmaceutical business into its next key profit engine.
The firm recently pledged to invest 500 billion won ($420 million) in the “red biology” business annually. Red biology means the medical and pharmaceutical area, developing new drugs to cure diseases in such areas as cellular therapy and antibody treatment.
“We have to strengthen the competitive power in the bioscience industry by sharing expertise and technologies in red and green biology,” LG Chem Vice Chairman and CEO Park Jin-soo said at a firm’s manufacturing facility in Iksan, North Jeolla Province, Thursday.
“Production-wise, LG Chem should focus on creating synergies by taking advantage of its massive manufacturing infrastructure and production know-how,” said the LG Chem chief.
He also called on its employees to remain open-minded to collaborate with talent from the two acquired companies.
“We should forge a human resources network system and be ready to join hands to generate differentiated values and gain a competitive edge in our business,” he added.
The latest move came as part of the firm’s aggressive bet on the bio-industry sector. In September, the firm unveiled its plan to generate over 5 trillion won in its annual bio business sales by 2025. Until then, LG Chem also hopes to become one of the world’s top five chemical firms.
In recent years, LG Chem has sought to diversify its revenue channels from the existing battery and chemical business to the emerging bio sector. The firm expects the global biotechnology industry to be worth some $140 billion by 2020, a steep growth from $100 billion in 2014.
“Human beings determine the fate for a firm’s survival and growth,” Park said. “The future of LG Chem lies in technologies that can save the world and mankind.”
On Friday, he plans to visit the firm’s Osong campu, North Chungcheong Province, to check production and quality management processes for vaccines.