Kyowa Hakko Bio decided on the move with expectations of a future increase in global demand for HMOs.
The new facility is to be established at Kyowa Hakko Bio’s subsidiary Thai Kyowa Biotechnologies Co., Ltd in Rayong Province, Thailand. The new facility is scheduled to open in the summer of 2022.
Kyowa Hakko Bio was the first company in the world to establish an industrial-scale HMO production system, and the application of this system will be the core of the company's medium- to long-term growth strategy. After the establishment of this production system, Kyowa Hakko Bio plans to supply HMOs to other companies as well as utilize HMOs for its own and the Kirin Group's product development.
Under Kirin Holdings’ medium-term business plan, Kyowa Hakko Bio will continue to make improvements to its quality assurance system and other operations. In addition, Kyowa Hakko Bio aims to grow into a global-scale specialty fermentation manufacturer featuring profitable product pipelines in the future.
The new facility will have a production capacity of approximately 300 metric tons per year and produce 2FL (2'-fucosyllactose), 3SL (3'-sialyllactose), and 6SL (6'-sialyllactose).
Kyowa Hakko Bio has already established manufacturing processes for three of its HMOs (2FL, 3SL and 6SL). However, its 3SL and 6SL, for which Kyowa Hakko Bio holds several registered patents, have not yet been supplied on an industrial scale.
The company said future growth in demand is expected in China and Southeast Asian markets, so locating a manufacturing base in Thailand will provide Kyowa Hakko Bio with a secure supply capacity and cost competitiveness close to large consumption areas.