As part of the deal, Arxada has pledged an investment of CHF 20 million (€20.4 million) to expand site production at its facility in Visp, Switzerland, to satisfy capacity requirements for DSM’s vitamin and aroma business in neighbouring canton Visp-Laden, with a specific focus on niacin.
Additional investment will be used to reduce on-site carbon footprint to realise the sustainability goals of both companies – and follows the substantial investment package in 2021 to reduce greenhouse gas emissions, according to Arxada.
Antje Gerber, President, Specialty Products Solutions, commented: “This significant new investment in our Visp facility secures the site’s long-term future, helping to fuel our future growth, and demonstrates our clear commitment to sustainability and reducing our carbon footprint.”
Global demand
DSM offers a broad range of vitamin B products, including niacin. Figures published by Fact.MR analysts in Niacin and Niacinamide Market indicate that Europe accounted for approximately a quarter of global market revenue for niacin and niacinamide in 2018.
The report states that growth was driven by governmental focus on raising awareness of high nutritional foods to reduce childhood obesity and unhealthy diets, according to a report produced by analysts at Fact.MR.
The activity of major regional players, including DSM, Lonza Group, and BASF, is also fostering ongoing activity in the market, the analysts write.
They predict the global market will continue to grow by around 5% in value terms between 2019 and 2027, thanks to increasing healthcare expenditure, healthy eating trends, demand in cosmetic products, and multiple health benefits.