Investors

A message for investors

Stephen Wang,
Chairman of the Board, CEO and Founding Team Member

This is an exciting time for us as our successes lead us to be able to plan aggressively for the future. We welcome financial investors to participate with us as we continue to strive for industry leadership. Below you will find an overview of important news about three of our facilities leading Kingchem’s ambitious growth in the pharmaceutical and fine chemical segments.

Our St. Francis, Wisconsin (USA) manufacturing facility

Having a commercial & logistics facility in New Jersey (USA) alongside our manufacturing and R&D facilities in China has been one key to Kingchem’s success. This long-term positioning of Western management and Eastern operational costs has always created both value and supply-chain reliability for our global customers. We have retained that model but expanded on it by acquiring our first manufacturing facility located in the United States.

Kingchem Laboratories Inc. of St. Francis, Wisconsin allows Kingchem to offer full cGMP production for pharmaceutical intermediates and APIs. It has an experienced team that can engage at every phase of drug development, from pre-clinical through commercialization. Production assets at the plant range from pilot plant to full commercial scale and include a variety of vessel sizes and materials of construction, including 2000-liter glass-lined, 2000-liter stainless steel, and 6000-liter Hastelloy vessels, as well as our new state-of-the-art ISO 8 (Class 100,000) API Material Handling room.

Kingchem is proud to leverage our strengths in China for back-integration of RSMs and extend our commitment to quality with our new cGMP facility in the USA to produce downstream intermediates and APIs for the pharmaceutical industry. We are in the process of implementing plant upgrades and capacity expansion at the Wisconsin facility, with planned spending of 5 million dollars in the coming 24 months. In addition, we will continue to hire more people for our R&D, QC, engineering and production department to further strengthen our manufacturing position in the U.S.

Our Dalian R&D facility

A recent second expansion to our Dalian R&D facility has just enlarged it to 3250m² (~ 35,000ft²). However, in order to keep up with the needs of our customers we will continue to invest in the facility, further expanding it and increasing its staffing levels.

Kingchem’s 90 research chemists and engineers already excel at synthesizing advanced intermediates and developing commercial processes. We now feature 125 research hoods, 30 walk-in hoods, with an additional new 3 synthesis labs being equipped and completed shortly

Our analytical group uses advanced analytical instrumentation such as 400 MHz NMR, LC-MS, GC-MS, HPLC, GC, DSC, RSD and UV for product development, impurity identification, in-process control, and product testing and release. Instruments such as EasyMax for process optimization (Calorimetric modular for thermal evaluations like RC1) and RSD (Thermal Hazard Technology) for process safety tests are used by our safety evaluation lab as well. (Click here to see the latest list of our industry-leading analytical equipment.)

Our Fuxin, Liaoning (China) manufacturing facility

In recent years, our 150,000m² manufacturing facility in Fuxin, Liaoning China (Kingchem Liaoning Life Science Co., Ltd.) has approximately doubled its manufacturing capacity. The plant now also features significant upgrades in the areas of industrial chillers, electrical power substations, a biological waste-water treatment plant, and our own in-house waste incineration capability.

As well, we have completed our new 2200m² (~23,680ft²) Technology center at the plant. It covers four floors, has a combined staff of 60 employees, and houses the plant’s QC and QA labs, four R&D labs and two Kilo labs, along with production management and administrative areas. The 2.5 million-dollar (USD) Technology center expands the plant’s analytical capabilities, such as elemental analysis of ICP-OES Agilent 5800, UPLC Agilent 1290, NMR analysis, and the different levels of scaled-up production capabilities. It also features a reversed QC lab which will be used for GMP analysis.

A new kilo lab has also been built and put into operation. Our kilo lab facilities now include 20-, 50-, and 100-liter reactors, vacuum filtration, thin-film evaporation, fractional distillation equipment, and Buchi rotary evaporators. This allows scale up of lab process to produce advanced intermediates in kilogram scale.

All this has increased bandwidth at every scale and has solidified us as a leading manufacturer of fluoro-organic compounds, as derived from our HF, KF, SF4 and electrochemical fluorination technology platforms. It also allows increased capacity for fluorination reagents, such as Pyridine HF, Triethylamine HF and Urea HF. A new F2 chemistry Kilo lab has been added to our SF4 lab and furthers our expertise in all types of fluorination.

As always, we continue to move forward. The plant has just brought online expanded commercial production with a new multipurpose workshop (K105). Additionally, a new production building is being constructed which will contain additional production workshops.

Our Vision

All the above has been an exciting trajectory for Kingchem over the past number of years, but it is only a prelude to the future. Our vision is to be regarded as one of the key CDMOs. To achieve this, we will continue to promote Kingchem as a preferred manufacturing partner offering to our customers not only our back-integrated manufacturing capabilities in fluorination, but also our sharp focus on quality, competitive economies, reliability and supply-chain security. Through this method, we will continually strengthen our market position in the global Pharmaceutical and Fine Chemical sectors.

Kingchem has grown significantly since being founded in 1994, but with our current production pushing us close to capacity, we must continue to expand all our facilities in order to meet the increasing needs of our global customers. I invite you to further explore our company. See, for example, how we go ‘Beyond the Chemistry.’ I then invite you to participate in our growth.

Yours Sincerely,

Stephen Wang