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.
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