DSM creates penicillins jv with Harbin, Zhang Jia Kou

28 November 2001 17:45  [Source: ICIS news]

LONDON (CNI)--Dutch chemicals group DSM said Wednesday it has set up a joint venture with local partners Harbin Pharmaceutical Factory and Zhang Jia Kou Pharmaceutical Factory to produce and market semi-synthetic penicillins in China.

DSM and Harbin Pharmaceutical each own 37% of the joint venture and Zhang Jia Kou Pharmaceutical holds the remaining 26%, according to a DSM spokesman.

The joint venture will build a plant in Zhangjiakou, China to produce 6-APA (amino-penicillanic acid), an essential raw material for the production of semi-synthetic penicillins. Facilities to make penicillins already exist at the site, said the spokesman.

The 6-APA plant will cost "several tens of millions of euros" to build, he added.

John Woo, general manager of the joint venture, said: "This alliance has created a win-win situation because DSM has a great deal to offer in the field of manufacturing know-how and technology while the two Chinese partners have extensive sales channels for the end products.

He added: "If the alliance works out well, we might consider expanding it in the future."

DSM also revealed that it will open a new antibiotics plant in Zibo, Shandong province in China on Friday. The plant, which costs several tens of millions of euros, will be operated by Xinhua-Chemferm, DSM's existing joint venture with local firm Shandong Xinhua Pharmaceutical.

The Zibo plant will produce a group of antibiotics known as semi-synthetic cephalosporins.

By: Russell Ong
+44 208 652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly