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Chemical giant DuPont (DD - Analyst Report) expanded its foothold in China with the launch of its advanced probiotic blending and packaging facility in Beijing. The new unit is DuPont Nutrition & Health’s initial step in packaging probiotics into ready-to-market formats. The new facility will permit DuPont’s customers to source ready-to-market probiotic formulations with the promise of better flexibility, quality and improved speed to market. The amount invested for this facility and its projected capacity have not been disclosed.

Earlier, in 2011, DuPont had bought a food processing plant north of Beijing and had changed it into a premier probiotic blending and packaging site. The investment for this was a part of global multi-year capacity expansion program for cultures and probiotics in the U.S., Europe and China.

The new plant will produce Danisco HOWARU premium and FloraFIT custom probiotic brands for its customers. DuPont already markets YO-MIX dairy cultures from its Danisco range brand in China.

The new Beijing facility will serve the probiotics market, which support digestive and immune health on the one hand and will cater to the needs of dietary supplement, food and beverage customers on the other. With the Probiotics industry’s growth rate touching double-digits annually around the globe and in China, DuPont’s Probiotics segment is also flourishing.

Industry estimates reveal that the probiotics market totaled more than $32 billion in 2012 and it is expected to increase to $45 billion by 2018. Of this, over 90% is attributed to food, beverage and dietary supplements.

Currently, DuPont holds eight sites in China that provide a range of food ingredients such as emulsifiers, hydrocolloids (blended ingredients), enzymes and sweetener ingredients to food protection ingredients like soy protein, lecithin and fiber, and molecular diagnostic solutions.

DuPont Nutrition & Health offers a wide range of sustainable, bio-based ingredients and advanced molecular diagnostic solutions to provide safer, healthier and more nutritious food.  

DuPont carries a Zacks Rank #4 (Sell).

Other companies in the chemical industry having favorable Zacks Rank are Cytec Industries Inc. (CYT - Snapshot Report), Northern Technologies International Corp. and PPG Industries Inc. (PPG - Analyst Report). While Cytec and Northern Technologies carry a Zacks Rank #1 (Strong Buy), PPG Industries retains a Zacks Rank #2 (Buy).

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