DSM strengthens global market position in antibiotics through joint ventures in China

29-Nov-2001

DSM has strongly boosted its global leadership position in antibiotics by building a new plant and establishing a new joint venture in China. DSM and Shandong Xinhua Pharmaceutical will jointly open a new plant for bulk antibiotics derived from 7-ADCA and DSM has set up a joint venture with Harbin General Pharmaceutical Factory and Zhang Jia Kou Pharmaceutical Factory for the production and sale of semi-synthetic penicillins in China. Dutch Minister of Economic Affairs, Mrs Annemarie Jorritsma, yesterday (Tuesday, 27 November) unveiled two plaques in Beijing, China, to commemorate this industrial partnership between China and the Netherlands.

Xinhua-Chemferm

Xinhua-Chemferm, DSM's existing joint venture with Shandong Xinhua Pharmaceutical, has built a new plant in Zibo, in the Chinese province of Shandong. The plant, which involved an investment of several tens of millions of euros, will be producing a group of antibiotics known as semi-synthetic cephalosporins on the basis of the essential DSM intermediate 7-ADCA. It is located at the same site as another, smaller plant operated by the joint venture and was built in response to the rapidly growing Chinese market.

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New joint venture

DSM, Zhang Jia Kou Pharmaceutical Factory and Harbin Pharmaceutical Factory will through the joint-venture produce and market semi-synthetic penicillin in China. A key raw material for this product is 6-APA. A production plant for this chemical is under construction. DSM's partners in this joint venture are renowned pharma houses in China. The general manager of this joint venture, John Woo, explains: "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. A joint venture can succeed only if the partners understand and respect each other and moreover share the same goals. If the alliance works out well, we might consider expanding it in the future."

New 7-ADCA plant

Mrs Annemarie Jorritsma, the Dutch Minister of Economic Affairs, recently opened a new DSM plant for the production of 7-ADCA, an intermediate for antibiotics, in Delft, the Netherlands. The process employed at this new plant is based on modern biotechnology developed largely by DSM itself, which has meanwhile been patented. The production of 7-ADCA via this 'green route' offers substantial environmental benefits as it involves no organic solvents. The production process is moreover much more energy-efficient and results in a product that is purer than 7-ADCA produced by classical chemical methods, at a lower cost price.

7-ADCA

7-ADCA (7-amino-deacetoxy-cephalosporinic acid) is an essential raw material for the production of cephalosporins, an important group of antibiotics. Antibiotics are medicines that are used to combat bacterial infections. They represent a major share of the overall pharmaceuticals market. Antibiotics derived from penicillin are by far the most important products in this market. There are two main groups of penicillin-derived antibiotics: semi-synthetic penicillins (such as ampicillin and amoxycillin) and semi-synthetic cephalosporins (such as cephalexin and cephadroxyl).

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