Daewoong Group subsidiary Daewoong Bio Inc. on Friday unveiled a vision to scale up its antibiotics business to 100 billion won ($79 million) in value, amid the slowing market for antibiotics.

Daewoong Bio said it has invested 50 billion won to build a new plant for manufacturing Cephalosporin, or beta-lactam antimicrobials used to manage a wide range of bacterial infections, in Hwaseong-si, Gyeonggi Province. The firm's existing Cephalosporin manufacturing plant in Seongnam-si, Gyeonggi Province will cease operations in 2024, due to outdated facilities.

Daewoong Bio explained its antibiotics business will center on its new plant in Hwaseong-si.

The company said it aims to have its new plant produce double the amount of products previously produced at its former plants, and ramp up its domestic market share by expanding its contract manufacturing organization operations for Cepha-based antibiotics.

The plant's manufacturing and management standards are also to be compliant with Current Good Manufacturing Practice rules and regulations, to stably produce high-quality products.

Daewoong Bio also said, based on its increased production capacity, that it aims to diversify its profit model by flexibly responding to demands caused by global antibiotic shortages.

The firm said it is ramping up its antibiotics business despite the weak market for them.

"Cephalosporin-based antibiotics are evaluated as businesses with poor marketability due to recent increases in raw material prices and low drug prices," said a Daewoong Bio official via a press release.

"More and more pharmaceutical companies are considering withdrawing their businesses from (Cephalosporin-based antibiotics), and the United States Food and Drug Administration recently announced their shortage of the products," he said.

Due to this shortage of products, the company sees its foray into the field as full of potential.

"Daewoong Bio has decided to make (the recent) strategic investment to turn dire situations into opportunities despite the tough environment for investments. The company will continue to grow its business to have it be worth 100 billion won in value," Daewoong Bio CEO Jin Sung-gon said.