September 29, 2003



Switzerland's Lonza Group to Build Vitamin B3 Production Base at Guangzhou, China


An eFeedLink Exclusive Report


Guangzhou Nansha Lonza Private Limited  attracted much attention in China two months ago in a land reclamation project at Nansha special economic zone in Guangzhou, China. Guangzhou Lonza Private Limited's investment plan is to enhance its existing operation in Guangzhou and by 2005 build its Swiss parent's Switzerland's Lonza Group's base for the manufacture and supply of nicotinamide (vitamin B3) to the global market. The company will be the first medical-chemical industrial enterprise to be set up at Nansha area in Guangzhou.


Increasing Production Capacity to Satisfy Higher Demand


As the main source of global nicotinic acid and nicotinamide (vitamin B3) supply, Switzerland's Lonza Group has already set up Guangzhou Lonza Private Limited in Guangzhou province since 1995. Meanwhile, the group also moved their global production base to Guangzhou. According to the general manager of Guangzhou Lonza Private Limited and Nansha Lonza Private Limited, Mr Bu Guo An, the nicotinic acid and nicotinamide produced by Switzerland's Lonza Group supply 70 % of requirements in the global market. They also supply to more than 60% of the requirements for feed use in China. The supply for medicinal use is even higher.


With the rapid development of China's feed, food and medical industry, the demand for vitamin B3 as a nutritious additive will increase considerably in the near future. According to market forecast, the demand for nicotinic acid and nicotinamide will hit above 40000 tons in 2005 in both Chinese and foreign markets. However, Guangzhou Lonza's current annual production is only at 4800 tons. Mr Bu Guo An says the establishment of Nansha Lonza Private Limited is in line with the growing demand in the Chinese market. Likewise, the increase in production capacity of Switzerland's Lonza Group will help to meet the increasing demand in the global market in the future.


Lonza Group's Investment in Guangzhou


Switzerland's Lonza Group is a giant in the fine chemical industry in the world. Mr Bu Guo An says that the company is happy with the past cooperation and working relationship with people and government officials in the Guangzhou area, and has thus again chosen Guangzhou as the production base for vitamin B3.


Part of Nansha special economic zone has been specially divided for the development of medical chemical-related industry in the hope of reinforcing the confidence of Switzerland's Lonza Group towards Nansha's commitment in this investment. The first phase of investment amounted to US $28.8 million to build a total area of 100,000 square meters for the nicotinamide production plant which will be named as Nansha Lonza Private Limited. The new nicotinamide plant will have a capacity of 90 million tons a year, with annual production value of RMB400 million, and is to be completed by 2005.


In addition, Lonza Group will also increase their investment in southern China in other areas. They plan to set up a wholly owned foreign investment company in Guangzhou by the end of this year. Besides, they are also planning to establish a technology research center at Nansha within two years, in the hope of transferring more and new production technology to China in the future.
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