Novonesis signed an agreement to acquire a production facility in Rayong, Thailand for around $50 million, expanding its fermentation capacity in Southeast Asia.
The Danish biosolutions company is buying the site from Meihua. The facility has existing fermentation capabilities that Novonesis plans to expand, including for production of human milk oligosaccharides (HMOs), which are used in infant formula.
Novonesis expects the site to be commercially operational in 2027 and plans further investment over the coming years.
The acquisition fits into the company’s GROW strategy toward 2030, which prioritizes expansion in emerging markets. Those markets already account for a third of Novonesis sales and are growing faster than developed regions.
Anders Lund, chief operating officer, said strengthening production in Southeast Asia supports the company’s supply network. “By expanding our world-class production capabilities, we can move closer to customers in a fast-growing region.”
The Thailand deal is part of a broader pattern. Novonesis has been expanding facilities in North Carolina, China, Brazil, and Wisconsin in recent years to build resilience and serve regional markets more effectively.
The company expects to increase growth-focused capital expenditure through 2030 as demand for biosolutions continues rising.
Novonesis, formed through the 2024 merger of Novozymes and Chr. Hansen, produces enzymes, microorganisms, and other biological solutions for food, agriculture, health, and industrial applications. The combined company employs over 10,000 people globally.
The Rayong facility gives Novonesis additional fermentation capacity at a time when HMO demand is growing. Several companies are scaling production of these complex sugars as infant formula manufacturers seek ingredients closer to human breast milk composition.
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- Source: https://worldbiomarketinsights.com/novonesis-acquires-thailand-facility-to-expand-asian-production/
