Infrastructure Enhancements to Better Serve Evolving Nutrition Market

Investments will enhance capabilities, boost efficiencies and better serve customers

(May 1, 2014, Indianapolis, Ind.)–Vertellus (Vertellus), a global leader in vitamin B3 production, has initiated an asset reorganization within its nutrition business segment designed to expand production capacity, increase site functionality, and improve cost structure while delivering enhanced quality and service to customers around the globe.  Organizational changes include the expansion of production capacity at the Indianapolis manufacturing plant, the addition of vitamin B3 production capacity at Vertellus’ world-class Nantong site, and the idling of assets at the Antwerp plant.  

In early March, Vertellus completed debottlenecking and infrastructure improvements at its Indianapolis-based niacinamide production facility, enabling a 30% increase in production capacity.  “Capacity-boosting enhancements, coupled with low energy costs in the United States and our full integration with pyridine and picoline, builds on our best-in-class cost position,” stated Vertellus Nutrition Business Director Bernie Szalkowski.  As debottlenecking solutions were implemented, Vertellus completed additional upgrades to plant facilities, including replacement of flooring.

Vertellus has also commenced construction of a new niacinamide facility at its Nantong, China, site. The plant is expected to begin production in October 2014 and will have an annual niacinamide production capacity of 5,000 MT. “The Nantong site is now fully integrated, from the production of beta picoline to the production of vitamin B3.  This significantly reduces costs and distribution challenges related to logistics and allows us to better serve the Asian markets,” said Szalkowski.

The Antwerp, Belgium, manufacturing facility is also part of the asset reorganization.  Vertellus will cease operations at the Antwerp niacin plant and close the niacinamide plant on a permanent basis.  The company has reserved the option to resume production at the niacin plant as market dynamics change, subject to continued maintenance of the asset, registration and permits. Szalkowski credited changing market conditions for the changes in Antwerp. “As market conditions have driven pricing downward over the past few years, it is necessary to reorganize our assets to enable reduction of both fixed and logistics costs,” he said.

Vertellus maintains an ongoing commitment to high-quality facility standards. This commitment is reflected in the company’s ongoing investment in infrastructure and facility improvements.  Bentley Park, Vertellus Agriculture & Nutrition President, says that the phase-one changes will give Vertellus a global and strategic production presence. “Our vitamin B3 infrastructure enhancements improve the efficiency and capability of the global Vertellus system, facilitating improved service to customers and markets around the globe,” said Park.