LycoRed takes aim at Asia with new facility

06-Sep-2012 - Last updated on 07-Sep-2012 at 05:39 GMT

Three years after the contract was signed to start construction, the Changzhou factory is now open

Growing awareness of nutritional intake among Chinese consumers has opened the door for Israel-based global premix supplier LycoRed.

The company said this week that its new premix plant in Changzhou, China, has received full approval and will start operations immediately. It will serve processors of infant formula, beverages, baby food and other food products across the Asia-Pacific region.

Milo Shen, regional sales manager for China at LycoRed, told FoodNavigator-Asia that the company will target makers of infant foods, dairy products, and supplements with its dairy business.

“This business is being supported by the growing population in China as well as the growing of awareness about nutritional intake in the country,” said Shen, revealing that the company is already working on projects with customers.

Wim van den Broecke, general manager for the Changzhou site, told FoodNavigator-Asia that the growing concern about food safety is another factor supporting the company’s foray into China.

“This is a key driver for the infant market in China. We have implemented our LycoRed standards to this new site for ensuring the highest and safest production process,” he said of the country's current concerns about safety.

He added that LycoRed opened the plant with the intention of being closer to its existing customer supply base of customers, who are increasingly present in the Chinese and Southeast Asian markets.

“In addition, LycoRed clearly wants to further grow, and the place to be for that is the region which is still enjoying significant growth: China and Southeast Asia,” said Van driveren Broecke.

Project planning for the site began in 2009, construction started June 2010, and installation, qualification and validation were completed by December the following year. LycoRed has invested a total of US$8m in the site.

“The facility is capable to make all dry blends for infant formula, fortification and supplementation. The facility is built according to the highest standards, and has room for further expansion,” he added.

Ilan Ron, LycoRed’s vice-president for sales and marketing, revealed that the company had recently received its Halal MUI certificate for its new vitamins D3, E and K1 formulations.

“These vitamins are made with a proprietary spray-drying process to ensure the completely solubility of vitamins. They can be used in premixes for infant formula and baby food, as well as in dry blends for beverages,” he said.