A strike by the labor union at Samsung Biologics Co Ltd (207940.KS) has cost the South Korean drug manufacturer about 150 billion won ($101.90 million), the company estimated in a statement.
"The precise financial impact cannot be quantified at this time, as the company is continuously applying all applicable measures to minimise impact," Samsung Biologics said in an email to Reuters. The estimate reflects the financial impact from a "partial disruption to overall line production."
The strike, which began on April 28 over pay disputes, involves 2,861 employees, representing roughly half of the company's total workforce, according to the union's website. Management has offered a 6.2% pay increase, but talks have so far failed to produce an agreement. Both sides are scheduled to resume negotiations on Monday, Yonhap News Agency reported.
The ongoing labor dispute could hinder Samsung's ability to secure new contracts and may disrupt a review into whether to build a sixth production plant, according to a note from Shinyoung Securities. The brokerage warned that clients, who are drawn to Samsung's reputation for on-time and low-cost delivery, could shift business to competitors in Europe and the United States.
The strike's financial toll highlights the operational risks for the world's largest contract drug manufacturer. Investors will be closely watching the outcome of Monday's negotiations for signs of a resolution and a return to full production capacity.
This article is for informational purposes only and does not constitute investment advice.
