Asahi Kasei Completes Second Plant for Ceolus™ Microcrystalline Cellulose

Rhea-AI Summary

Asahi Kasei has completed the construction of its second Ceolus™ microcrystalline cellulose (MCC) plant at Mizushima Works in Japan, signaling a commitment to meet soaring demand for this product. The groundbreaking occurred in September 2021, with an investment of ¥13 billion, and the facility began trial operations in April 2023. Ceolus™ is critical in pharmaceutical manufacturing, providing enhanced stability and quality for tablet formulations. This facility aims to increase production capacity and support global distribution, thereby improving access to Ceolus™ for patients and manufacturers.

Positive

• Completion of the second Ceolus™ plant enhances production capacity and stability.
• Significant investment of ¥13 billion indicates confidence in market demand.
• Trial operations began in April 2023, leading to increased supply for pharmaceutical manufacturers.

Negative

• None.

NEW YORK & DÜSSELDORF, Germany & TOKYO--(BUSINESS WIRE)-- Asahi Kasei, a diversified Japanese multinational company, has completed the construction of its second plant for Ceolus™ microcrystalline cellulose¹ (MCC) at its Mizushima Works in Kurashiki, Okayama, Japan, in January 2023. With the new facility, the company underlines its commitment to meet the substantially growing demand for its MCC.

Demand for Ceolus™ used in pharmaceutical tablets is growing substantially, especially for the proprietary high-performance grades Ceolus™ KG and Ceolus™ UF. The second plant for Ceolus™ will not only raise supply capacity but also enhance the stability of supply through production at multiple sites. (Graphic: Business Wire)

Second plant for Ceolus™
The Functional Additives Division of Asahi Kasei’s Life Innovation SBU has manufactured Ceolus™ in Nobeoka, Miyazaki, Japan, since 1970. Ceolus™ is supplied to customers around the world, primarily for use as tablet binder² for pharmaceuticals.

Demand for Ceolus™ used in pharmaceutical tablets is growing substantially, especially for the proprietary high-performance grades Ceolus™ KG and Ceolus™ UF. The second plant for Ceolus™ will not only raise supply capacity but also enhance the stability of supply through production at multiple sites.

The outline of the new plant
Location	Asahi Kasei Mizushima Works Kurashiki City, Okayama Prefecture, Japan
Construction schedule	Groundbreaking in September 2021 Completion in January 2023
Investment amount	¥13 billion
Product	Ceolus™ microcrystalline cellulose
Customers	Manufacturers of pharmaceuticals, supplements, etc., worldwide

The new plant is currently undergoing trial operation, with commercial production of each grade scheduled to begin in succession from April 2023.

“The increased capacity at this new plant will enable us to provide a more stable supply of Ceolus™ for distribution centers around the world to get products to customers in greater quantities,” says Eiichi Hori, Senior General Manager of Functional Additives Division. “The second plant will make Ceolus™ more accessible to patients around the world. We are excited to see the innovative, new formulations that pharmaceutical and supplement manufacturers will develop utilizing our MCC.”

Featuring an innovative particle morphology, Ceolus™ offers various solutions to the pharmaceutical and supplement industries: It facilitates challenging formulations, solves tableting issues, and enables unique and patient-friendly dosage forms. It also contributes to customers’ production efficiency by enabling high-speed tableting and reducing production problems. In addition, less black particles, less impurities including nitrite and nitrate which may cause nitrosamine associated risk, and the consistently high quality of Ceolus™ directly contribute to the quality improvement of customers’ formulations.

Asahi Kasei expects that the new plant will make a further contribution to life and living for people around the world by providing Ceolus™ to more customers globally, enabling the manufacture of pharmaceuticals and supplements that have been difficult to make into tablets, and meeting the needs of pharmaceutical companies, supplement companies, and patients through the development of high-performance products.

¹ Microcrystalline cellulose is a white powder made from natural pulp, mainly used as an excipient for pharmaceuticals and foods

² Tablet binders are additives used for the purpose of providing the shape and increasing the volume of solid tablets

Please refer to the press release dated January 13, 2021
“Asahi Kasei to build a second plant for Ceolus™ microcrystalline cellulose”
https://www.asahi-kasei.com/news/2020/e210113.html

About Ceolus™
As the requirements for functionality of pharmaceuticals and supplements continue to rise year by year, Ceolus™ contributes by facilitating the development and manufacture of solid dosage formulations such as tablets. Backed by over 50 years of manufacturing expertise, Ceolus™ is positioned to further support pharmaceutical and supplement companies in their development of formulations with higher quality and functionality. Asahi Kasei will continue to develop advanced grades of Ceolus™ while providing richer services to customers over the decades to come.

About Asahi Kasei
The Asahi Kasei Group contributes to life and living for people around the world. Since its foundation in 1922 with ammonia and cellulose fiber businesses, Asahi Kasei has consistently grown through the proactive transformation of its business portfolio to meet the evolving needs of every age. With more than 46,000 employees around the world, the company contributes to a sustainable society by providing solutions to the world's challenges through its three business sectors of Material, Homes, and Health Care. Its Material sector, comprised of Environmental Solutions, Mobility & Industrial, and Life Innovation, includes a wide array of products, from battery separators and biodegradable textiles to engineering plastics and sound solutions. For more information, visit https://www.asahi-kasei.com/.

The Asahi Kasei Group aims to contribute to a carbon-neutral and sustainable world from the perspective of “Care for Earth” by focusing on initiatives such as the use of biomass raw materials, recycled raw materials, and renewable energy. The company strives to meet the expectations of its customers and society by further advancing the provision of products and services with such sustainable characteristics while deepening collaboration with other companies to reach a carbon-neutral society by 2050. To learn more, visit https://www.asahi-kasei.com/sustainability/.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230215005473/en/

Company Contact North America:

Asahi Kasei America, Inc.

Jon Todd

39475 W. Thirteen Mile Road, Suite 201, Novi, MI 48377

E-mail: AKA-info@ak-america.com

Company Contact Europe:

Asahi Kasei Europe GmbH

Sebastian Schmidt

Fringsstrasse 17, 40221 Düsseldorf

Tel: +49 (0) 211-3399-2058

E-mail: sebastian.schmidt@asahi-kasei.eu

Source: Asahi Kasei

FAQ

What is the significance of Asahi Kasei's new Ceolus™ plant for investors in AHKSY?

The completion of the new Ceolus™ plant is projected to significantly enhance production capacity and stability, positively affecting future supply and potential revenues for investors.

When did Asahi Kasei begin operations at the new Ceolus™ plant?

Trial operations began in April 2023, with commercial production scheduled to follow.

How much was invested in Asahi Kasei's new Ceolus™ plant?

An investment of ¥13 billion was made for the construction of the new plant.

What products will Asahi Kasei's new plant produce?

The plant will produce Ceolus™ microcrystalline cellulose, primarily used in tablet manufacturing for pharmaceuticals.

What are the expected benefits of the new Ceolus™ plant for global distribution?

The new plant is expected to improve supply stability and accessibility of Ceolus™, enabling faster distribution to pharmaceutical manufacturers worldwide.