Snaith-based Croda International has broken ground at a greenfield site in GuangZhou that will become its new multi-purpose production facility for fragrances and beauty actives ingredients in China.
Aligned with Croda’s strategic priority to deliver fast growth in Asia, the new state-of-the-art, low-carbon facility will significantly expand Croda’s fragrance manufacturing capacity in China. It also marks the inauguration of a production capability for beauty actives within the region. This investment underscores Croda’s dedication to the country, enabling realisation of its “Made in China for China” initiative, while also facilitating exports to other countries in the region.
Croda Chief Executive Steve Footssaid: “This investment reaffirms Croda’s deep-rooted commitment to China. It triples our manufacturing capacity for fragrances and establishes a production capability for beauty actives for the first time. I had the pleasure of hosting local dignitaries at this momentous event and look forward to a productive collaboration with them as we accelerate our growth in China.”
The GuangZhou facility will be principally used to manufacture fragrances, with existing fragrance production in China consolidated on the new site. Croda’s Fragrances and Flavours (F&F) business was initially established through the 2020 acquisition of Iberchem which has a twenty-year track record in China.
Tony Xu, General Manager, Iberchem China, said: “The investment underpins Croda’s ambitions for its F&F business, which has delivered strong double-digit percentage per year sales growth in China over the last 20 years.”
The investment will also establish Croda’s first production capacity in China for its Beauty Actives business, focused primarily on botanical extracts.
Jeffrey Wu, MD Croda China, said: “The market for botanicals in China is growing strongly reflecting Chinese consumers’ long-standing preference for natural extracts. The new facility will provide local production for Croda’s globally renowned beauty actives brands, increase our responsiveness to customers and enable us to meet local market needs.”
The Croda Guangzhou site is expected to be commissioned in 2025 and will include application laboratories, R&D facilities and offices as well as manufacturing.
