Akzo Nobel expands Diosynth’s position in biotechnology

08-Oct-2001

Akzo Nobel has announced a new – EUR 18 million – investment for its Pharma business unit Diosynth to increase its biopharmaceutical upstream manufacturing capacity in Oss, the Netherlands.

“Through this new investment we will realize part of the synergy potential between a recent U.S. acquisition and our biotechnology business in the Netherlands”, said Johan Evers, General Manager of Diosynth.

“In November 2000 we opened our state-of-the-art purification and isolation unit in Oss, and we also started the construction of a cell culturing and fermentation unit. In June 2001 we acquired Covance Biotechnology Services Inc. – now called Diosynth RTP – in the U.S., with its large development and manufacturing organization and a strong commercial network in the U.S.,” Evers added.

“Now we are taking the next step in our biotechnology strategy by expanding our capacity for large scale production of biopharmaceuticals, with reactor volumes ofup to 18 cubic meters. The extra capacity on the Oss site will serve the combined needs of Diosynth in Europe and Diosynth RTP in North America, enhancing our ability to meet increased market demand on both continents,” explained Evers.

The extra manufacturing capacity to be built is strategically important for Diosynth’s future position in the market for complex active biopharmaceutical ingredients, justifying this investment in spite of the generally difficult investment climate being experienced today.

Diosynth expects that the new facility will come on stream by the end of 2003.

Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings and chemicals. Consolidated sales for 2000 totaled EUR 14 billion (USD 13 billion, GBP 8.5 billion). The Company currently employs 67,500 people in more than 75 countries. Financial results for the third quarter of 2001 will be published on October 24, 2001.

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