Lonza Invests in Technology to Support Growth of its Nutrition Business 

03/05/07 Lonza Group Ltd has acquired the assets of S.A.M. Electron Technologies based in Shawinigan Canada. The acquisition of these assets is concurrent with an exclusive worldwide license for a cerium mediator electrochemical technology (CeTECH) from Hydro-Québec and lease agreement with the City of Shawinigan.

CeTECH is an electrochemical cerium based oxidation technology, recognized by ICIS as the best Process Innovation of 2005, which can be used to produce a variety of high value added compounds. It has been demonstrated on a commercial scale for the production of vitamin K-3. This advanced technology is a cleaner and more environmentally friendly process, which unlike most current vitamin K-3 manufacturing processes, avoids the use of chromium as oxidizing agent and eliminates the production of its undesired chromium by-products. It is a closed system regenerating the cerium with an innovative cell design.

This vitamin K-3 manufacturing capability, along with our existing nicotinate and L-carnitine (Carniking) production facilities in Visp (Switzerland), Kouřím (Czech Republic) and China, ideally positions Lonza to become the supplier of choice to the animal feed industry and other markets. The acquisition is anticipated to support the acceleration of manufacturing and supply to the industry on a fully commercial scale.

The plant has a nominal production capacity of 400 metric tons per year for vitamin K-3 derivatives and can be quickly expanded to achieve much higher capacities. The Shawinigan operations are anticipated to provide jobs for approximately 20 people locally.

The acquisition closed on 2 May 2007 and is a wholly owned and operated subsidiary under Lonza Canada Inc.

Roman Quinter, Head of Lonza’s Nutrition Business Unit, said: "Lonza is excited about integrating this operation into our overall business portfolio and we are eager to begin working with the S.A.M. team to maximize the production and begin supplying to the global market."

“We look forward to working within the Lonza organization and are excited about the opportunity to maximize the business incorporating Lonza expertise into the process. With Lonza, all the key ingredients are present in order to establish CeTECH™ as a new ecological standard for the production of vitamin K3”, said Bezahd Mahdavi, Founder and former President of S.A.M. Electron Technologies.