Lonza Niacinamide Production Facility, Guangzhou, China

Lonza Fine Chemicals and Specialties, a major producer based in Switzerland, put a production facility for niacinamide into operation following a joint venture agreement with the Guangzhou Pesticide Factory. Lonza had the bigger share in the joint venture, with a 60% stake. The Chinese partner has been assigned the task of recruiting employees and distributing the products of the plant around China. Lonza will use its international distribution network outside China. In addition to the above, the Guangzhou Pesticide Factory has also provided the manufacturing site where the new plant has been erected. The plant is located in Iksan, which is in North Cholla province in the south western region of South Korea.

Niacinamide is the water-soluble form of niacin, an essential vitamin of the B group better known as vitamin B3. With its current production capacity of 15,000 tonnes/year in Switzerland, Lonza is the largest producer of this B-complex vitamin, supplying more than half the world's requirements. The product is a nutrient additive used in food, feed and pharmaceuticals. The Chinese market is a major growth area for vitamins in both the long and the short term. The rising living standards of the Chinese, driven by the country's still strong economic growth, should ensure a continuing demand for vitamins. This is driven both from the food side and the pharmaceuticals side.

NIACINAMIDE PLANT PROJECT

The niacinamide project was initiated in 1997, and was commissioned in the last half of 1999. The cost of the joint venture was $30 million.

The niacinamide plant has a capacity of 3,400 tonnes/year. To do this, the joint venture uses a new process developed by Lonza Ltd under license. This process involves a 4-stage synthesis using nylon 6.6 byproduct 3-methyl-1,5-diaminopentane as starting material. This is transformed into picoline, which is ammoxidated and then biocatalytically hydrolysed to niacinamide. The advantages of this new process are said to include a low use of energy and a low rate of emissions. The low energy usage should be particularly useful in a country where electricity supply still has trouble meeting the rapidly growing demand.

Around 25% of niacinamide production is destined for the domestic market and the rest is exported. Lonza's intention is that the Chinese plant will gradually replace its facility at Visp in Switzerland, which has a capacity of 1,400 tonnes/year of niacinamide, where the company has been making niacin for the past thirty years. The first step is for the Chinese plant to be used to meet Lonza customer needs in the Asian market. The Chinese plant is part of a wider expansion plan which is seeing investment in manufacturing facilities in Switzerland, the USA and China.

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