Lonza Selects Nansha (China) for its New Plant for Vitamin B3

The new facility will provide additional 15’000 metric tons of product per year, representing an increase of more than 40% over current capacity. Lonza will invest approximately CHF 50 million in the construction of the new nicotinate plant over the next three years.

11 May 2010 --- Lonza has selected Nansha, its leading high-tech life-science site in China, as location for its new vitamin B3 manufacturing site. The investment, which was approved by the Board of Directors of Lonza Group Ltd, will help to meet growing market demand, to fulfill long-term customer commitments and to defend and grow Lonza’s global leadership role in vitamin B3. The new site will enhance Lonza’s global competitiveness and will be ready to serve the global and Chinese food, feed- and cosmetic market. Our highly skilled and experienced workforce will ensure the use of all possible synergies with existing operations including optimized energy consumption. The excellent support from the local authorities as well as the local presence of our own Engineering Business Unit were further reasons for the selection of Nansha as location for the new vitamin B3 plant.

The new facility will provide additional 15’000 metric tons of product per year, representing an increase of more than 40% over current capacity. Lonza will invest approximately CHF 50 million in the construction of the new nicotinate plant over the next three years. The capacity will be added in phases, with the first phase expected to come on-line in 2011, followed by full operation in 2012.

“The new facility underlines our commitment to be the global leader in the nicotinates business and to deliver the food, feed, cosmetic and pharma industry with high quality vitamin B3 products”, comments Roman Quinter, Senior Vice President and Head of Lonza’s Nutrition Ingredients business. “We will also take advantage of very promising innovations in technology and process development. These innovations will provide cost and efficiency advantages to all the company’s nicotinate facilities.”

Nicotinates, including both nicotinic acid and nicotinamide, are vitamin B3 supplements used in the food, animal feed, and pharmaceutical industries.