Chinese companies rush to increase in 7-ACA manufacturing capacity
10/17/2005
A new round of investment rush was initiated recently for manufacturing of 7-ACA, a key intermediate for cephalosporins, following announcement by Joincare Pharmaceutical Group (formerly Taitai Pharma) to invest RMB 510 million into the construction of a new manufacturing facility of 7-ACA.
The new facility is expected to be completed in 2007 with an annual production capacity of 1,000 tons.
Shijiazhuang Pharma and Fuzhou Antibiotics are the biggest producers of this product in China, and they were forced to expand their production recently as many other Chinese companies, like Joincare, are starting new production or expanding their existing production of the product.
It is believed that the Chinese producers will soon have a total production capacity of 4,000 to 5,000 tons, more than satisfying the estimated global demand of over 3,000 tons.
The sharply rising production capacity is likely to cause another round of severe competition and price war.