Lonza unveils significant investment plan in China

10/04/06 Lonza Group has announced its commitment to substantially further invest in Nansha Guangzhou, China. The expansion activities will enhance Lonza’s existing production operations in Guangzhou. The pledged investment is the result of a signed letter of intent between Lonza Group and Nansha authorities.

The strategic investment will amount to USD 200 million over the next few years. Lonza’s investment plan was revealed during a celebration event in Nansha. The event marked Lonza’s 10 year anniversary of thriving operations of Lonza Guangzhou Ltd., the inauguration of Lonza Guangzhou Nansha Ltd., the completion of their new Nansha Research and Development complex and Lonza’s investment plan in the region. H.E. Mr. Zhang Guangning, Mayor of Guangzhou City, and many City Officials joined Lonza during the celebrations.

The investment plan will occur in phases, taking place over a three to five year period. Lonza’s plan design includes building a multi-purpose API (active pharmaceutical ingredients) and ISO regulated intermediate plant complex which delivers large scale and pilot scale production capabilities. Lonza’s investment will build upon the current foundation existing in China, and will combine international knowledge with local expertise. This will deliver a broader range of capacities, products and services.

Stefan Borgas, Chief Executive Officer of Lonza commented: “This project will mark another important milestone in Lonza’s long-term strategic plan. It is a key element in achieving the targeted growth for Lonza. Since 1995, Lonza Group has selected Guangzhou City to be its investment front in China. We firmly believe that this region offers cutting-edge technology platforms, manufacturing excellence, and a competitive cost environment which complements Lonza’s other international sites.”

Lonza currently produces a significant share of the global market of Niacinamide (Vitamin B3) in their two operations in Guangzhou City. The R&D Center located in the Nansha Development Zone participates in developmental activities for intermediates and active ingredients for the pharmaceutical and fine chemical industries worldwide.