Croda expands in China: New facility to boost fragrance and beauty active ingredients production

30 Oct 2023 --- Croda is set to establish a new smart science manufacturing facility for high-performance fragrance and beauty active ingredients and solutions in Guangzhou, China, aligning with the company’s strategic expansion objectives in Asia.

“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 look forward to a productive collaboration with them as we accelerate our growth in China,” says Steve Foots, Croda’s chief executive.

“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,” comments Jeffrey Wu, managing director at Croda China.

Made in China for China
The recently announced expansion aligns with the company’s objectives for its “Made in China for China” initiative, which is also set to facilitate exports to other countries in the region.The new facility will triple Croda’s manufacturing capacity for fragrances and establish a production capability for beauty actives.

“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,” comments Tony Xu, general manager of Croda’s subsidiary Iberchem China.

The state-of-the-art facility will expand the company’s fragrance manufacturing capabilities in China significantly. It marks the inauguration of beauty product manufacturing for its Beauty Actives business, focusing mainly on botanicals.

The new manufacturing site will focus on fragrance production, and all current Croda fragrance production in the country will be relocated to the new location.

The Croda Guangzhou site is set to be commissioned in 2025 and will feature laboratories, R&D facilities, offices and manufacturing facilities.

Croda’s business activities
Earlier this year, Croda announced its partnership with Univar Solutions to expand its mineral sunscreen product range and distribution on the Brazilian market by adding Croda’s specialty ingredients for sun care filters.

Also this year, Croda revealed its new biotechnologically-derived ingredients that can be used in a broad range of home care products such as laundry detergents and biosurfactants. The company has highlighted the need for a transition from petrochemical-derived to bio-based ingredients in personal and home care products.

In the previous year, the company released its first-ever “Biotechnology: personal care market report,” aimed at companies interested in exploring the realm of biotechnology. The report discussed the potential of and barriers to innovation, as well as customer habits and expectations.

By Milana Nikolova

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