April 4, 2008

Lonza Group invests in new vitamin B3 plant

Press Release
 

Swiss life science company Lonza Group has announced its plans to expand its manufacturing capacity for nicotinates in order to meet growing market demand and to fulfill long-term customer commitments.
 

The company's nicotinates, which include both nicotinic acid and nicotinamide, are vitamin B3 supplements used in the food, animal feed, and pharmaceutical industries.

The new facility will provide an additional 15,000 tonnes of product per year, representing an increase of more than 40 percent over current capacity. Lonza will invest approximately CHF 50 million (US$49.4 million) in the construction of the new nicotinate plant over the next three years in order to strengthen its global leadership position. The capacity will be added in phases, with the first phase expected to come on-line in 2010, followed by full operation in 2011.

Options for the location of the new manufacturing site are currently under evaluation. Current manufacturing plants for nicotinates are located in Visp at Switzerland, as well as Guangzhou and Nansha at China. The decision will take into consideration the location of new market growth as well as opportunities for manufacturing and market synergies. The new facility will also take advantage of very promising innovations in technology and process development that is currently in pilot operations. These innovations will provide cost and efficiency advantages to all the company's nicotinate facilities.

Lukas Utiger, executive vice president and head of Lonza Life Science Ingredients, said, "The new capacity in nicotinates is important for us to be able to meet the long-term demands of our customers. In addition, we are excited about the continued implementation of technologies and new processes that will secure our long-term cost leadership in this market."

Basel-based Swiss company Lonza is one of the world's leading suppliers to the pharmaceutical, healthcare and life science industries. It is involved in cell-based research, endotoxin detection and cell therapy manufacturing. Lonza is also a provider of value chemical and biotech ingredients to the nutrition, hygiene, preservation, agro and personal care markets.