Bukwang Pharmaceutical is investing 240 billion won to build a state-of-the-art automated warehouse at its Ansan facility in Gyeonggi Province. This strategic investment aims to enhance both pharmaceutical production capacity and logistics efficiency.
On August 27, Bukwang announced that the new automated warehouse will increase its storage capacity from 1,500 cells to 4,500 cells, tripling its current capacity. A cell refers to the minimum storage space within a logistics warehouse where pallets and other goods are stored.
The new warehouse will feature advanced logistics equipment, including loading racks, stacker cranes, and a warehouse management system (WMS). It will comply with Good Manufacturing Practice (GMP) standards, allowing for integrated control of the entire process from raw materials to finished pharmaceuticals.
With the introduction of the automated system, the previously dispersed storage facilities will be consolidated into a single location, reducing the time required for loading and unloading per cell from 10 minutes to 38 seconds, a decrease of approximately 94%. Consequently, the workforce needed for warehouse operations is expected to be reduced by about 60%.
The efficiency gained from streamlined logistics is anticipated to lead to increased production capacity. Bukwang will secure the infrastructure to produce an additional 200 million tablets annually, which corresponds to an estimated revenue increase of about 26 billion won.
Construction of the warehouse is set to begin this month, with a target for full operation by September of next year. A representative from Bukwang stated, "This investment is aimed at proactively addressing logistics saturation in line with our long-term goal of establishing a production system for 1.2 billion tablets annually by 2029. We plan to achieve workforce efficiency and productivity improvements through a smart logistics network, thereby enhancing the stability of pharmaceutical supply in the market."
Meanwhile, Bukwang's consolidated revenue for the first half of this year reached 104.8 billion won, a 15.9% increase from 90.4 billion won in the same period last year. This marks the first time the company has surpassed 100 billion won in half-year revenue.
Last year, the company also reported a revenue increase of about 27% compared to the previous year, setting a record at that time, and has now surpassed that record again within a year. However, operating profit fell to 2.5 billion won, a 50% decrease from the same period last year, indicating ongoing challenges in improving profitability.
On August 27, Bukwang announced that the new automated warehouse will increase its storage capacity from 1,500 cells to 4,500 cells, tripling its current capacity. A cell refers to the minimum storage space within a logistics warehouse where pallets and other goods are stored.
The new warehouse will feature advanced logistics equipment, including loading racks, stacker cranes, and a warehouse management system (WMS). It will comply with Good Manufacturing Practice (GMP) standards, allowing for integrated control of the entire process from raw materials to finished pharmaceuticals.
With the introduction of the automated system, the previously dispersed storage facilities will be consolidated into a single location, reducing the time required for loading and unloading per cell from 10 minutes to 38 seconds, a decrease of approximately 94%. Consequently, the workforce needed for warehouse operations is expected to be reduced by about 60%.
The efficiency gained from streamlined logistics is anticipated to lead to increased production capacity. Bukwang will secure the infrastructure to produce an additional 200 million tablets annually, which corresponds to an estimated revenue increase of about 26 billion won.
Construction of the warehouse is set to begin this month, with a target for full operation by September of next year. A representative from Bukwang stated, "This investment is aimed at proactively addressing logistics saturation in line with our long-term goal of establishing a production system for 1.2 billion tablets annually by 2029. We plan to achieve workforce efficiency and productivity improvements through a smart logistics network, thereby enhancing the stability of pharmaceutical supply in the market."
Meanwhile, Bukwang's consolidated revenue for the first half of this year reached 104.8 billion won, a 15.9% increase from 90.4 billion won in the same period last year. This marks the first time the company has surpassed 100 billion won in half-year revenue.
Last year, the company also reported a revenue increase of about 27% compared to the previous year, setting a record at that time, and has now surpassed that record again within a year. However, operating profit fell to 2.5 billion won, a 50% decrease from the same period last year, indicating ongoing challenges in improving profitability.
* This article has been translated by AI.
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