Lotte Fine Chemical has secured a $1 billion global distribution agreement with Colorcon, the leading U.S.-based pharmaceutical cellulose distributor. The 10-year deal, announced on October 7, will see Colorcon exclusively distribute Lotte’s high-value specialty pharmaceutical cellulose products worldwide.
The South Korean company is investing 79 billion won (US$59 million) to expand its pharmaceutical cellulose plant, with completion expected next year. This expansion is set to propel Lotte from its current position as the world’s second-largest producer to the top spot in terms of production capacity.
Pharmaceutical cellulose, derived from wood pulp, is used in tablet coatings and capsule production. The market for this plant-based material is growing rapidly, driven by aging populations and increasing demand for health functional foods.
Lotte Fine Chemical anticipates an additional 1 trillion won (US$745 million) in revenue over the next decade from this agreement. The partnership leverages Colorcon’s six decades of experience and global reach, with 27 locations serving pharmaceutical companies worldwide.
This collaboration marks a significant step for Lotte in the high-value, technically demanding specialty pharmaceutical market, positioning the company for future growth in the evolving healthcare materials sector.
