Croda breaks ground at new Consumer Care production facility in China
27 October 2023:
Croda International Plc (“Croda”), the company that uses smart science to create high-performance ingredients and solutions that improve lives, 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.
Steve Foots, Croda Chief Executive, delivered a keynote address at the groundbreaking ceremony and commented: “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, Managing Director, 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.
For enquiries contact:
Investors: David Bishop, Croda +44 7823 874428
Press: Charlie Armitstead, Teneo +44 7703 330269
Established in 1925, Croda is the name behind sustainable, high-performance ingredients and technologies in some of the world’s most successful brands: creating, making and selling speciality chemicals that are relied on by industries and consumers everywhere. Croda is a FTSE 100 company with over 6,100 passionate and innovative employees, working across manufacturing sites and offices around the world with a shared Purpose to use Smart science to improve lives™. As part of this Purpose, Croda has committed to be the most sustainable supplier of innovative ingredients, becoming Climate, Land and People Positive by 2030.