IFF opens new flavors plant and lab in China, reinforces its commitment to sustainability

09 Oct 2018 --- International Flavors & Fragrances Inc. (IFF) is opening two new facilities in China – a flavors manufacturing facility in the Zhangjiagang Free Trade Zone from today (October 9), and a Natural Products Research lab, located in the Nanjing Life Science Park, on October 15.

The flavors plant is the company’s second in China and is designed to supplement IFF’s existing flavors and manufacturing operations in Guangzhou. The Naturals Lab is the company’s first outside of the US.

“China is a critical component of our long-term strategy,” says Andreas Fibig, IFF Chairman and CEO. “The opening of these new sites will support our efforts to be a partner of choice and to grow in this exciting region. Our presence in Zhangjiagang allows us to serve our Chinese customers better and focus on driving differentiated products within the broader Greater Asian market and beyond.”

Fibig continues: “Ever-mindful of the value of naturals for consumers around the world, the output of the new Naturals Lab is not limited by region. It is an opportunity to combine our discoveries with our innovative technologies to create winning solutions for our global customers.”

The Zhangjiagang site spans 66,800 square meters, encompassing the main manufacturing building that is fitted with a strong odor control system, quality control labs and an ambient warehouse for goods. Aligned with IFF’s commitment to sustainability, this facility is designed to have zero liquid discharge by reusing all water on-site and is built to LEED Silver qualifications. The site will initially focus on powder flavor production with additional flavor technologies coming online in a phased approach.

“IFF is focused on creating winning tastes that resonate both locally and globally,” notes Matthias Haeni, Divisional CEO, Taste. “With this new world-class facility, we are well-positioned to meet the current and future needs of our customers – and do so responsibly and sustainably. We are proud to build on this legacy with our growing presence in China and look forward to being a strong corporate neighbor in our new homes within the Zhangjiagang Free Trade Zone and the 2 Nanjing Life Science Park.” 

The Natural Product Research lab is approximately 520m2 and equipped with state-of-the-art systems for the research and development of flavors from natural sources. The lab is strategically located to leverage the botanical supply chain, biodiversity, and accumulated botanical and phytochemical knowledge prevalent throughout China’s expansive history. The facility will expand the company’s capabilities in natural product research and address the accelerating consumer demand for naturals and clean label, according to IFF. 

“Speaking for the team, we cannot wait to see what innovations we will discover to help support the growing demand for naturals,” says Dr. Gregory Yep, EVP Chief Global Scientific & Sustainability Officer. “IFF is committed to sustainability in all we do. We are excited to partner with our regional and global customers and help bring their products to consumers in an environmentally responsible manner. These new sites are positioned to push the boundaries of what’s possible for IFF in Greater China and globally, too.”

Yesterday (October 8) members of IFF's senior management team rang the New York Stock Exchange (NYSE) Opening Bell at 9:30 a.m. Eastern Daylight Time to celebrate the completion of IFF’s combination with Frutarom, creating a global leader in taste, scent and nutrition. 

Rich O’Leary, Executive Vice President and CFO, says: “When we were first listed on the NYSE in 1964, our revenue was US$52 million, and now, as we approach our 55th year being listed, our proforma 2018 revenue will be US$5.3 billion. IFF’s combination with Frutarom accelerates our innovation platform, extends our portfolio of offerings and supports IFF as our customers’ partner of choice. IFF is now even better positioned to deliver sustainable, profitable growth through its enhanced platform and broader exposure to fast-growing end markets. We are excited to move forward as one company to provide significant value creation for our customers, employees, partners and shareholders.”

Last Friday, IFF completed its acquisition of Frutarom signaling the start of the new global leader in taste, scent and, nutrition with “even greater aspirations.” 

Speaking to FoodIngredientsFirst about the deal, Fibig says: “IFF customers get greater access to natural ingredients, natural colors, natural antioxidants, as well as botanicals and extracts. We are very excited about the cross-selling opportunities. Frutarom customers get greater access to IFF technologies and R&D, as well as its extensive ingredient portfolios for both flavors and fragrances. We are most excited about the cross-selling opportunities; in addition to the stronger product offering, we will have greater exposure to fast-growing customers and broader access to attractive adjacencies.” You can read more about the implications of this merger here.