AGC (AGC Inc.; Headquarters: Tokyo; President: Yoshinori Hirai) has decided to expand the production lines at the Kaminaka Plant (in Mikata Kaminaka-gun, Fukui Prefecture) of AGC Wakasa Chemicals (Headquarters: Obama City, Fukui Prefecture), a subsidiary of AGC that conducts CDMO^* for synthetic agrochemicals and pharmaceuticals. The additional capacity is expected to start operation in the first quarter of 2024. This expansion will increase AGC Wakasa Chemicals’ manufacturing capacity to 1.5 times the current level, with a view to further expansion in the future.

In recent years, synthetic agrochemical and pharmaceutical CDMOs are required to have cutting-edge technological capabilities. This reflects increasing demand for new generation agrochemicals that are safe and environmentally friendly in the agrochemical market and strong demand for fluorine-containing pharmaceuticals. The AGC Group possesses a wide range of technologies, including fluorine synthesis, and this capacity expansion will strengthen its integrated services, from the production of fluorine raw materials at AGC's Chiba Plant to the production of agrochemicals and pharmaceuticals active ingredients at AGC Wakasa Chemicals. This will enable AGC to meet the needs of a wider range of Japanese and overseas agrochemical and pharmaceutical manufacturers.

Under its AGC plus 2.0 management policy, the AGC Group has positioned its Life Science business including its synthetic agrochemical and pharmaceutical/biopharmaceutical CDMO services, as one of its strategic businesses. The Group has been expanding its business through acquisitions and capital investments and aims to expand sales in the Group’s Life Science business from 44.9 billion yen in 2018 to 110 billion yen in 2021 and 200 billion yen or more in 2025. The AGC Group will continue to expand its CDMO business to meet the increasing demand in the agrochemical and pharmaceutical market, and contribute to the security and improvement of people's healthy lives and a sustainable food supply.

Notes

＊　CDMO: Contract Development & Manufacturing Organization. A company which is contracted on behalf of another company to provide product manufacturing services as well as the development of manufacturing processes.

REFERENCE
■ Company Overview of AGC Wakasa Chemicals

Company name	AGC Wakasa Chemicals Co., Ltd.
Headquarters	24-26-1 Iimori, Obama City
Plants	Obama Plant / Pharmaceutical Plant (Obama City, Fukui Prefecture) Kaminaka Plant (Mikata Kaminaka-gun, Fukui Prefecture)
Paid-in capital	90 million yen
Shareholder	AGC Inc. (100%)
Year established	1998
Number of employees	136 (As of November 1, 2021)
Business profile	For over 20 years, AGC Wakasa Chemicals has been engaged in AGC’s CDMO business for manufacture of pharmaceutical and agrochemical products and specialty chemicals, such as co-catalysts. With its strengths in halogen chemistry, including fluorine and iodine, its ability to develop new synthetic processes, effective use of resources through recycling of waste and rare metals, and technology to reduce costs through these methods, the company provides one-stop custom development and manufacturing services from raw materials to active ingredients, including newly developed products, to over 20 corporate customers in Japan and overseas. In addition, it has a dedicated pharmaceutical plant that produces consistently high quality and GMP-compliant products.