SEOUL, Sept. 2 (Yonhap) -- SK Group said Monday it will launch a new entity in the United States to better manage its contract manufacturing organization (CMO) business.
SK Holdings Co., the conglomerate's holding firm, said its board members have approved a plan to establish SK Pharmteco in Sacramento, California, by January. The company will serve as a subholding firm that oversees management of three CMO business affiliates -- SK Biotek Co., SK Biotek Ireland Ltd. and AMPAC Fine Chemicals LLC.
SK Holdings said the move is to streamline its CMO business and create synergy between the affiliates.
SK Group has been bulking up its drug business in recent years. In 2017, the South Korean conglomerate purchased Bristol-Myers Squibb's manufacturing facility in Ireland.
Last July, it also acquired AMPAC, a U.S.-based manufacturer of active pharmaceutical ingredients, in a deal reportedly worth 800 billion won (US$660 million).
SK Group said its CMO business logged 480 billion won in sales last year.
The conglomerate said the global CMO market is expected to have annual growth of 7 percent on average until 2023.
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