Lonza Expands Its Capsule Manufacturing Capacity

Lonza announced a CHF85m (93m USD) investment in its Capsules and Health Ingredients (CHI) Division, a dosage form delivery partner to the biopharma and health nutrition industry. The investment will enable the company to expand its overall production capacity of capsules within CHI’s Capsugel® portfolio by 30 billion capsules annually while maintaining the high-quality standards with Lonza’s Sigma Series. Production capacity will be increased across Lonza’s global manufacturing and supply chain network to help further strengthen the company’s position as a leading global supplier of capsules. The investment will allow a 15% increase in CHI’s current capsule production capacity.

This latest commitment follows on from an initial investment initiated in 2019 to increase CHI’s capacity by 10 billion capsules. The addition of manufacturing capacity for a further 30 billion capsules will address the high growth across CHI’s gelatin, vegetarian, and specialty polymers portfolio as well as the liquid-filled hard capsules sold under the Licaps® brand. This investment will be made over two fiscal years, 2020 and 2021, across eight global Lonza manufacturing sites, including Bornem (BE), Colmar (FR), Greenwood (USA), Haryana (IN), Jakarta (ID), Puebla (MX), Sagamihara (JP), and Suzhou, (CN).

The current industry trends are leading to an increased demand for capsules both in the pharmaceutical and nutritional supplements markets. Patients are seeking preventative treatments, while consumers want to support healthier lifestyles. Expanding the manufacturing capacity of Lonza’s entire network will allow ample supply both in the near- and long-term. Additionally, the expansion underlines the strategic position of capsules within the broader nutrition industry and will also support production as CHI also introduces new dosage technologies such as Lipid Multi Particulates (LMP) technologies and several new time-release functional capsule solutions.

About Lonza

At Lonza, we combine technological innovation with world class manufacturing and process excellence. Together, these enable our customers to deliver their discoveries in the healthcare, preservation, and protection sectors.

We are a preferred global partner to the pharmaceutical, biotech and specialty ingredients markets. We work to prevent illness and promote a healthier world by enabling our customers to deliver innovative medicines that help treat or even cure a wide range of diseases. We also offer a broad range of microbial control solutions, which help to create and maintain a healthy environment.

Founded in 1897 in the Swiss Alps, Lonza today operates in 120 sites and offices in more than 35 countries. With approximately 15,500 full-time employees, we are built from high-performing teams and of individual employees who make a meaningful difference to our own business, as well as the communities in which we operate. The company generated sales of CHF 5.9 billion in 2019 with a CORE EBITDA of CHF 1.6 billion.