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Novozymes closes streptococcal based production of hyaluronic acid

09 Jan 2008 - Novozymes has decided to close its production facility in the Shandong Province, China, by January 7, 2008. As a result of the closure, Novozymes will no longer produce or sell streptococcal based hyaluronic acid but maintain its focus on bacillus based hyaluronic acid.
 
The facility in the Shandong Province, China, for streptococcal based production of hyaluronic acid (sHA) was originally acquired by Novozymes in early 2006 as an addition to Novozymes' existing bacillus based hyaluronic acid (bHA) production.
 
Novozymes is now closing the facility because of adverse market developments. In particular, accelerating price erosion for sHA in the dietary supplement market coupled with a low growth outlook in technical markets has meant that the commercial assumptions behind the acquisition can no longer be met. The decision will have no significant financial impact for Novozymes, according to the company. The facility employs a total of 132 employees. Novozymes will as far as possible help all employees when the facility closes.