Lonza Expands Gelatin Capsule Production in India and China Amid Plans to Exit Capsules Business

Expansion Plans:
Lonza has announced a significant expansion of its capsule manufacturing capacity in India and China, aiming to increase production by 30 billion capsules annually13.

Exit Strategy:
Despite this expansion, Lonza plans to exit the capsules business to focus on its core Contract Development and Manufacturing Organization (CDMO) operations. This strategic shift is part of the company's "One Lonza" strategy, which will be operational from Q2 20252.

Investment:
The expansion involves a CHF85m (approximately $93m USD) investment across Lonza's global manufacturing and supply chain network, including sites in India and China3.

Market Demand:
The expansion is driven by increased demand for capsules in both pharmaceutical and nutritional supplement markets, reflecting consumer preferences for preventative treatments and healthier lifestyles3.

Strategic Positioning:
The investment underlines the strategic importance of capsules within the broader nutrition industry and supports the introduction of new dosage technologies such as Lipid Multi Particulates (LMP) and time-release functional capsule solutions3.

Sources:

1. https://www.lonza.com/capsules-health-ingredients/service-and-support-solutions/capsule-quality

2. https://www.tabletscapsules.com/3639-News/616676-Lonza-Looks-to-Shed-Capsules-Unit-Focus-on-CDMO-Business/

3. https://www.worldpharmatoday.com/news/lonza-expands-its-capsule-manufacturing-capacity/