Samyang Holdings Completes Construction of Surgical Suture Plant in Hungary to Expand Its Share in European Market - New plant of Samyang Holdings in the Gödöllő Industrial Complex, Hungary with its c
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06/16/2023

Samyang Holdings Corporation

Samyang Holdings Completes Construction of Surgical Suture Plant in Hungary to Expand Its Share in European Market - New plant of Samyang Holdings in the Gödöllő Industrial Complex, Hungary with its c

- New plant of Samyang Holdings in the Gödöllő Industrial Complex, Hungary with its ceremony attended by the Deputy Minister of Foreign Affairs and Trade and the Commissioner of the Hungarian Investment Promotion Agency

- The first Korean pharma-biotech company in Hungary to produce up to 100,000 km of surgical sutures per year

- Samyang, the world no. 1 suture manufacturer, aims to expand its business in the European market, which accounts for 30% of the company's exports

Samyang Holdings (President Lee Young-joon), the world no. 1 biodegradable suture manufacturer, has established a production plant in Hungary to expand its market share in Europe. The move makes Samyang the first Korean pharma-biotech company to establish a medical device manufacturing plant in Hungary.

On Jun. 13 (local time), Samyang Biopharm held a ceremony to celebrate the completion of its manufacturing plant in Gödöllő, Hungary. The event, which included greetings, progress reports, a congratulatory speech, an opening ceremony, and a site tour, was attended by: Hungarian Deputy Minister of Foreign Affairs and Trade Sztáray Péter, Deputy Commissioner of the Hungarian Investment Promotion Agency Kerbutsky Gergely, Gödöllő Mayor Gémesi György, Korean Ambassador to Hungary Hong Kyu-dok, KOTRA’s Trade Representative to Budapest Kim Yong-deok, Samyang Holdings Chairman Kim Yoon, and President Lee Young-joon.

The new plant is located in the Gödöllő Industrial Complex, about 30 km east from the outskirts of Budapest. Built on a 36,000 m2 site with a total investment of approximately KRW 28 billion, the new plant has a gross floor area of 6,700 m2 and is capable of producing up to 100,000 km of surgical suture per year upon reaching its full operational capacity by 2025. Samyang Holdings is aiming to expand its annual output to 200,000 km based on market demand.

More than 90% of Samyang Holdings' total suture sales come from exports, and Europe is the axis of its exports, accounting for 30% of export sales. In order to expand its market share in the vast European market, Samyang Holdings established a Hungarian subsidiary in 2019. With the completion of the new production plant serving as its cornerstone, the company plans to expand its market share in the region.

Samyang Holdings' decision to choose Hungary as its outpost for expanding into the European market is driven by the country's immense potential to serve as a production hub and a logistics center. Geographically, Hungary shares borders with seven European countries. This proximity to key importers, including Spain, Italy, Germany, France and Türkiye presents a significant benefit for the company as it can ensure stable supplies and reduce logistics costs. Another significant advantage of Hungary is its membership in the European Union (EU) and its Customs Union. As a member of the EU, products made in Hungary benefit from tariff-free trade within the EU market.

“We have built this suture production plant with an annual production capacity of 100,000 km of suture on the foundation of production technology and quality control systems that Samyang Group has accumulated over the years, using our best technology and expertise,” said Kim Yoon, Chairman of Samyang Holdings. He added, "We plan to strengthen our position in the European market with the Hungarian plant as an outpost and expand our business into various fields such as biosurgery and cosmetic surgery.”

In his congratulatory speech, Hungarian Deputy Minister of Foreign Affairs and Trade Péter Sztáray stated, “We would like to congratulate the completion of the Samyang Biopharm’s plant in Hungary and express our gratitude to Samyang Group for sparing no effort to invest even in a difficult economic environment.” He continued, “The Hungarian government will continue to provide various supports and implement cooperation policies to encourage foreign companies, including Samyang Group, to invest further in Hungary.”

Biodegradable sutures make up approximately 45% of Samyang Biopharm’s total sales. Each year, Samyang Holdings supplies about USD 50 million worth of sutures to more than 190 businesses in 45 countries and is maintaining its position as the company with the largest share in the global suture market.

In addition to manufacturing surgical sutures, Samyang Biopharm has recently launched a series of innovative biosurgery products, such as: "Neosorb Plus," an antibacterial suture that reduces the risk of infection during surgery; "Monofix," a knotless barbed suture for convenient endoscopic and robotic surgery; "SurgiGuard," a styptic product made with oxidized regenerated cellulose; and "InterGuard," an anti-adhesive agent. The company is also expanding into the cosmetic surgery market in Korea and the global market with the launch of Croquis, a lifting suture for improving skin elasticity and wrinkles.

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