Facility will meet demand from China’s consumers for products based around natural extracts.
Croda has broken ground for a greenfield multipurpose fragrances and beauty actives ingredients facility in GuangZhou, China. Focused primarily on botanical extracts, the company said that the new low-carbon plant is aligned with its strategic priority to deliver ‘fast growth in Asia.’
Croda added that the investment also emphasised its commitment to the country, enabling the realisation of its ‘Made in China for China’ initiative, while facilitating exports to other countries in the region.
The new facility will be mainly used to manufacture fragrances, with existing fragrance production in China consolidated on the new site. As well as manufacturing, the Croda Guangzhou site will include R&D along with application laboratories, and is expected to be commissioned in 2025.
Croda’s new investment also meets growing demand from China’s consumers for products based around natural extracts. ‘The market for botanicals in China is growing strongly, reflecting Chinese consumers’ long-standing preference for natural extracts,’ said Jeffrey Wu, Managing Director Croda, China.
Croda Chief Executive, Steve Foots, speaking at the ground breaking ceremony added: ‘[This] investment triples our manufacturing capacity for fragrances and establishes a production capability for beauty actives for the first time.’
In recent years Croda has made significant investments in new capacity. In 2022 it announced that plans to build a lipid facility in Lamar, Pennsylvania, US would be supported by funding from the US government. The facility contributes to a US programme aimed at expanding the country’s industrial base supporting critical vaccine and therapeutic manufacturing activities.
Also in 2022, Croda received UK government funding to expand its lipid systems manufacturing facility located in Staffordshire, UK. Matching the government funding, the company said that the investment would enhance development of high-purity lipid systems essential for the delivery of next generation nucleic acid drugs such as mRNA vaccines.
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