Lonza Niacinamide Production Facility, China

Key Data

Lonza Fine Chemicals and Specialties, a major producer based in Switzerland, put a production facility for niacinamide into operation in 1997 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 was assigned the task of recruiting employees and distributing the plant's products across China. Lonza used its international distribution network outside China.

The Guangzhou Pesticide Factory also provided the manufacturing site where the plant was erected. The plant is located in Iksan, North Cholla province, which is in the south western region of South Korea.

Niacinamide is the water-soluble form of niacin, better known as vitamin B3.

With its production capacity of 15,000t per 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 the long and short term. Rising living standards, driven by the country's strong economic growth, should ensure a continuing demand for vitamins. This is driven from the food side and the pharmaceuticals side.

Niacinamide plant project

"Around 25% of niacinamide produced is destined for the domestic market; the rest is exported."

The niacinamide project was initiated in 1997, and was commissioned in the last half of 1999. The cost of the joint venture was $30m. The plant covers an area of 35,000m² and has a capacity of 5,500t per year. The joint venture uses a new process developed by Lonza under license.

This process involves a four-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 process include a low rate of emissions and low energy use, the latter useful in a country that still has trouble meeting its rapidly growing electricity demands.

Around 25% of niacinamide produced is destined for the domestic market; the rest is exported. Lonza's intention is that the Chinese plant will gradually replace its 1,400t-per-year niacinamide facility at Visp in Switzerland, which has been operational for nearly 40 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 US and China.

"In March 2010, Lonza announced plans to expand the facility to increase production capacity for Carnipure and Carniking."

Construction of a second site for the production of niacinamide took place in April 2003. The site, Lonza Guangzhou Nansha, covers 320,000m² and began production in 2005 and has an annual niacinamide capacity of 9,000t.

In March 2010, Lonza announced plans to expand the facility to increase production capacity for Carnipure and Carniking, L-Carnitine products belonging to Lonza’s Nutrition business within Life Science Ingredients. Owing to strong scientific evidence, a favourable regulatory status and consumer appeal, the products are experiencing a rise in demand.

The expansion will take place in phases, the first of which will begin by the end of 2010, and production should begin by 2012.

The facility will be ISO9001, ISO14001, ISO22000 and FAMI-QS certified, and will implement Hazard Analysis and Critical Control Points (HACCP) principles.

The custom manufacturing API facility, a chemical manufacturing small-scale plant, was launched in September 2007. Phase I became operational in December 2008, while phase II was launched in August 2009.

Niacinamide manufacturing meets standards

Niacinamide produced at the plant meets national and international quality standards, including CHP, USP, BP, JP and European Pharmacopoeia. China's State Food and Drug Administration (SFDA) certified the company with the GMP certificate in 1999 and in 2000, the plant cleared the US Food and Drug Administration (FDA) inspection.

In 2001 and in 2003, the plant cleared the ISO9001, ISO14001 and OHSAS18001 audits. The company passed the HACCP audit in 22004, and passed the UK's Medicines and Healthcare Products Regulatory Agency GMP audit a year later.

The plant also passed a second FDA inspection in 2008. In 2009, the plant passed the third GMP audit conducted by China's SFDA, and also passed the ISO9001:2008, ISO14001:2004 and OHSAS18001:2007.

The niacinamide project was commissioned in the last half of 1999 at a cost of $30m.

Production building and warehouse at the plant in the south western region of South Korea.

The Chinese plant is part of a wider expansion plan of Lonza, which is seeing investment in manufacturing facilities in Switzerland, the US and China.

Analytical lab for raw materials intermediates and final products.