Recently, the flavor and fragrance industry in Zengcheng has been a bit unusual, and many practitioners are discussing the new Croda factory.This veteran specialty chemicals company from the United Kingdom, its Croda Aiboxin low-carbon factory in Zengcheng has officially opened.As a company with a century-old accumulation, Croda is also very atmospheric this time. With an investment of 290 million yuan and a factory area of 25 acres, it is indeed a lot larger than the previous scale.
To say that the most interesting point of this new factory is that in addition to the increase in the production capacity of flavors and fragrances, it has also moved the production of beauty active ingredients of plant extracts to China.This is no trivial matter. In the past, most of these ingredients were produced overseas and then imported. Now, after localization, it is much more convenient to make customized products for the domestic market or export to Southeast Asia.
What's more interesting is that Croda is not the only foreign-funded Hong Kong company that likes Zengcheng.Guangzhou Xinjie Additives, a subsidiary of Triarogy, Singapore's leading flavor company, has also set up a R&D and production base in Zengcheng. With an investment scale of more than 300 million, it is planned to be put into operation in the first quarter of next year. The products cover three types of flavors: food, tobacco, alcohol, and daily chemicals, with an annual output of 4,500 tons.
Two foreign-funded enterprises have been laid out one after another, and it is not difficult to see that Zengcheng has now become a popular choice for foreign-funded Hong Kong companies to layout China.In fact, Croda has a lot of fate with the Chinese market. Its Aibo Xin has been in the market for 20 years. Its business has been doing very steadily over the years, and its growth momentum has never been interrupted.Since Aibo Xin was merged into Croda in 2020, the two sides have been integrating resources. The landing of the new factory this time can be regarded as an important node for the collaborative development of the two sides.
Croda's positioning of this new factory is also very clear. It is not just a simple production workshop, but a comprehensive R&D, production and sales base in the Asia-Pacific region.The area of the factory has been expanded by 6 times, integrating laboratories, R&D equipment, intelligent production lines and warehouses to form a complete operating system.
Now domestic consumers are more and more fond of natural and gentle beauty ingredients. Croda's new factory focuses on plant extracts and beauty active ingredients, which just stepped on the tuyere of this market.The person in charge of their Greater China region also mentioned that localized production can keep up with market changes faster and provide domestic brands with more flexible raw material support, which is also one of the core reasons for their layout of domestic production.
For local supply chain companies, the landing of Croda's new factory is also a good opportunity.Zengcheng's daily chemical industry is already relatively mature. The new factory must cooperate with local enterprises in the procurement of raw materials, production and processing.For example, in beauty formulas, active ingredients such as plant extracts have to be matched with good
Emollients and emulsifiers to be effective. Our
Caprylic capric triglyceride is a suitable gentle emollient base, which can improve the skin feel and stability of the product. This kind of local synergy is beneficial to both parties.
Let's talk about Triarogy. This Singaporean company was established in 1987 and has a layout in the fields of flavor, fragrance, and pet care flavors. It has previously invested 66 million yuan in Qingyuan, Guangdong to build a production and research base. This time, it will invest more than 300 million yuan to increase the city. Obviously, the company is optimistic about the industrial atmosphere and radiation capabilities here.
The combined investment of these two projects is almost 600 million, and the annual output value is expected to exceed 1.2 billion. After it is put into operation, it will not only bring advanced production technology and R&D resources to Zengcheng, but also make the local flavor and fragrance industry more solid foundation.Foreign-funded Hong Kong companies got together to Zengcheng, but the core is that the advantages here are too prominent.
Needless to say, Zengcheng is stuck in the middle of Guangzhou and Shenzhen, and the transportation is convenient. Whether it is for the local market in the Pearl River Delta or for export to Southeast Asia through the port of Guangzhou, it is very convenient, which just matches the export needs of companies such as Croda and Triarogy.
Croda's new factory also has many highlights in terms of sustainable development and technological innovation. It fully follows up on the group's 2030 sustainable development goals, and the entire production process is moving towards a low-carbon direction.In addition to plant extracts, research and development will also focus on the innovative application of natural flavors, which is just complementary to our technical reserves in the field of emulsion makeup.
The stability of natural flavors in makeup has always been a difficult problem in the industry. High-quality makeup emulsifiers can make the flavors better blend with the makeup base and reduce the volatilization of aromas. If cooperation can be reached, it may be able to open up new market growth points.With the advancement of these two foreign-funded projects, the effect of Zengcheng's flavor and fragrance industry cluster will become more and more obvious, and the upstream and downstream enterprises will gather, and the industrial system will be more perfect.
The advanced technology and management experience brought by foreign investment can also drive local enterprises to enhance their innovation capabilities and help Zengcheng build a highland for the flavor and fragrance industry in the Greater Bay Area.Now domestic consumers are becoming more and more picky about cosmetic ingredients, and the rise of consumer groups pursuing high ingredients has forced innovation in raw materials. Plant extracts and natural flavors are becoming more and more popular. Localized production by foreign-funded enterprises can also better meet market demand.
For the local supply chain, such a trend means more opportunities.In addition to emollient and
Emulsifier, there is also room for cooperation in the solubilization and stabilization of flavors. For example, our
Peg 40 hydrogenated castor oil, as a commonly used solubilizer, can help flavors dissolve better in the aqueous phase system, and it works well with Croda's natural flavor products.
In the future, with the full implementation of these projects, Zengcheng's beauty industry will become more and more mature, and the radiation will drive the development of the daily chemical industry in the entire Greater Bay Area.The deep integration of foreign investment and local supply chains will promote the development of the domestic flavor and fragrance industry to high-end and natural, and bring more good products to consumers.Zengcheng will also rely on its own advantages to become an important hub for global flavor companies to layout China.
Hubei Mingya New Material Technology Co., Ltd.
