Awareness of Chinese B5 deal important for US
shortage in the US market, following the acquisition by Xinfu
Biochemical Company of the next biggest player in China.
Xinfu - now re-named Zhejiang Hangzhou Xinfu Pharmaceutical Co - has acquired the assets of Zhejiang Huxhou Lionking Fine Chemical Co (Lionking), a move which gives it an annual capacity of more than 6,500 metric tones, according to Greg Edmunds, VP marketing for Charles Bowman.
Charles Bowman has been Xinfu's exclusive US distributor for the past two years, and has recently had its contract extended. Edmunds explained to NutraIngredients-USA.com that the company wants to raise awareness over the deal to prevent temporary supply issues.
He fears that these may occur if US companies that had previously source B5 direct from Lionking receive no response to their enquiries, or are redirected to Xinfu. Xinfu will then redirect American customers to Charles Bowman.
What is more, the news could have an impact on companies that have to buy factory specific material. Companies requiring factory certificates of analysis need to be aware that material previously sourced from Lionking will now bear Xinfu's name.
"There is a need to notify companies that may have Lionking material before the distributor tells them they don't have it any more," said Edmunds.
Xinfu now claims to be the world's largest supplier of vitamin B5.
"If a US company is buying Chinese material, it is likely to be either from Xinfu or Lionking," said Edmunds.
He said that the next three largest suppliers, Daichu, DSM and BASF, have a combined capacity of 8,500 metric tons.
B5, also known as d-calcium pantothenate or calpan, is incorporated into most B vitamin supplements. Unlike some other vitamins, such as ascorbic acid, it is not a commodity with a market that is subject to swings. Edmunds said that demand is generally steady in the US, and no huge surge or drop-off in demand has been caused by the findings of a large-scale clinical study.
As well as supplying B5 for food and supplements, Xinfu also supplies B5 series for the hair care, skin care, cosmetics markets, such as that contained in Pantene ProVitamin B5 hair care range.
"The acquisition of Lionking will further solidify Xinfu's position of B5 chemicals," said Edmunds.
