ZURICH -(Dow Jones)- Swiss chemical company Lonza Group (LONN.VX) Friday said it plans $200 million additional investments in the production capacity of its existing operations in Guangzhou, China, spread over the next three to five years.
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 investment plan will occur in phases, taking place over a three to five year period. Lonza's plan design includes building a multi-purpose 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.