A new round of investment in customized synthetic chemicals reduces production costs and becomes an important means for the development of these companies

The world pharmaceutical raw materials conference held in Madrid last week brought good news to custom synthetic chemicals companies. After a declining trend in recent years, the global custom synthetic chemicals industry serving active pharmaceutical ingredients and advanced intermediates began to emerge. New round of investment expansion.
Over the past five years, due to overcapacity, the custom chemical industry has undergone frequent restructuring. At present, apart from traditional manufacturers, there have been some new members in this industry, namely, new companies that were spun off from fine chemical companies and were established through business restructuring and some private equity investments. Despite the fact that the manufacturers in the industry have different starting points, different sizes, and different business areas, the pursuit of development and growth is the consistent goal of these companies. Expanding production scale and reducing production costs have become an important means for the development of these enterprises.
SAFC’s revenue in the first half of this year increased by 18% compared with the same period of last year, which is not yet the income of mergers. SAFC, a new company formed after the acquisition of Tetrionics by the Sigma-Aldrich Group's Fine Chemicals division, currently invests 12 million U.S. dollars to double its capacity for efficient active pharmaceutical ingredient plants in Madison, Wisconsin. According to SAFC's president, the company also expanded its production of cytotoxins and bacterial fermentation products in Jerusalem.
Clariant also reorganized its fine chemicals business in recent years. The company currently invests US$5 million in the expansion of its cGMP pharmaceutical ingredient manufacturing facility in Springfield, Missouri, USA. It is also expanding the production of an active pharmaceutical ingredient manufacturing facility in Tonneins, France, with Jülich Fine Chemicals and Switzerland. Solvias reached an agreement to expand the supply of cyanohydrin and ligand screening products to both companies.
LANXESS, which has been spun off from Bayer Chemical, had sales of approximately 480 million U.S. dollars for its Fine Chemicals division. The company currently intends to transfer this portion of its business to its subsidiary, Saltigo. It is reported that Saltigo will be launched in the second quarter of next year. The characteristics of Saltigo's products and services are more emphasis on serviceability.
DSM is very optimistic about the fine chemical industry next year. The company’s vice president of sales and marketing said “Although there is still excess capacity in the market, there is still plenty of room for high-level restructuring, but these are not pessimistic reasons, because the fine The business volume of the chemical industry, especially pharmaceutical raw materials, has started to rise again."

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