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Asia Industry Overview
By: Kelly Frederick, Associate Editor
Posted: July 26, 2006, from the August 2006 issue of P&F magazine.
In fact, China leads the way in spurring growth in Asia Pacific, a region slated to advance at about 7.3 percent, year on year, until 2008. This compares to Western Europe and the United States with 3.7 and 3.3 percent growth, respectively. It’s no wonder why, just in the past five years, most — if not all — of the top 10 F&F companies have scrambled to get a piece of the action. Just this month, Treatt plc announced the opening of Treatt China in Shanghai. This is the same location where Givaudan’s flavors plant — said to be the largest in the world — will be opening later this year. This is a significant investment for the industry’s No. 1 company, which first entered China in 1997. Also expected to open later this year in China is IFF’s $29-million specialty ingredient (aroma chemical) plant.
China might be receiving a majority of the attention, but it certainly is not the only Asian country that is being developed by the F&F industry. Singapore is another hot spot within the Asia Pacifi c region. In the past couple of years, Takasago expanded its Singapore facilities, Danisco opened an innovation center in the area, Givaudan opened a technology center focusing on Asian fl avors and IFF expanded its fragrance plant. Other countries in the region are not to be ignored as fl avor and fragrance companies race to stake “claim” to new, relatively unexplored areas. Two years ago, when Dansico Flavors announced the construction of its production facility in Malaysia, the division’s vice president, Mac Mardi, said, “With the rapid growth we’ve had in the Asia Pacifi c region and increasing sourcing of local raw materials, there’s a need for a strong manufacturing presence to service our customers and to strengthen and expand our market position.” It is obvious that this region, whether it be Malaysia, China, Singapore, Japan, Sri Lanka, etc., is certainly on the forefront of all major F&F suppliers’ goals and plans.
People interviewed: Givaudan's Tan Kim Lian, Markus Brunnschweiler, Pang Chong Ning and Nicole Yue; IFF's Carina Chia
This is only an excerpt of the full article that appeared in P&F Magazine. The full content is not currently available online.