"Investment into the most advanced and most reliable technology will strengthen our position on the global market. Several dozen new employees will be joining the company thanks to this facility and our current production capacity will rise by roughly 50 per cent," said Tomasz Cieslewski, director of Lonza Biotec in the Czech Republic. He added: "Practically all of our production is now exported and is intended for major global pharmaceutical and biotechnology companies."
The firm says that the facility could allow it to increase production of its key nutraceutical ingredient L-carnatine, if demand is sufficient. Currently demand for the ingredient is increasing rapidly as food companies begin to take up on the ingredients health-giving properties for a wide range of applications. The ingredients has witnessed particularly strong growth in the Japanese market.
While most of the extra capacity is designed to cater for the firm's custom manufacturing business, the Czech Republic is also the main site for Lonza's L-Carnitine production.
"As we will dispose of greater capacity, it does not exclude an impact on the carnitine business if we had to respond to increased demand," Cieslewski said.
He declined to give current output volume or sales figures for the ingredient.
Lonza is one of only a few producers of L-carnitine, having developed a proprietary production process. It now offers L-Carnitine in various forms for both human and animal nourishment around the world and is thought to be the largest supplier.
The company also plans to create a biotech R & D centre in the Central Bohemian town of Kouøim. This, the company says, would mean a breakthrough in Lonza Biotech's further development and would strengthen biotech platforms in the Czech Republic.
"The biotech industry plays a fundamental role in the future economic development of individual regions around the world. It is a field which is demanding in terms of research facilities, a highly educated work force, experienced company management as well as proximity and connectivity with supplier firms. For this reason it is a very good reference for the Czech Republic abroad when such demanding investments succeed and further expand here," commented Martin Jahn, CEO of CzechInvest, Investment and Business Promotion Agency.