Genofocus subsidiary GF Permantec has successfully signed a large-scale long-term supply contract for N-acetyl Phytosphingosine (NPY), a key raw material of Ceramide.
According to the financial industry on the 3rd, Genofocus signed an exclusive long-term supply contract worth a total of 70 billion KRW for NPY with UK-based global specialty chemical company C. The contract period extends until 2028.
The counterparty is a global chemical materials company headquartered in the UK, selling a wide range of products from specialty petrochemical products to healthcare materials. It is known that the market for NPY is oligopolized by German chemical company E and GF Permantec.
NPY is a key raw material of Ceramide, a high-priced, high-functional cosmetic ingredient. Ceramide is used in expensive cosmetics or cosmeceutical (cosmetics + pharmaceuticals) materials due to its excellent effects on skin cell growth, proliferation, and skin protection.
GF Permantec was the second in the world to succeed in mass production of NPY using proprietary fermentation technology. With this long-term supply contract, it is expected to achieve annual sales of over 10 billion KRW from NPY as a single material. In particular, additional sales growth is anticipated as customer C is strengthening its business capabilities in ceramide-related materials.
A Genofocus official stated, "With the long-term supply contract for the high value-added material NPY, we have secured a stable sales channel from this year and can achieve significant performance improvement," adding, "Based on our unique technology and large-scale production facilities, we will expand various high value-added bio healthcare material businesses such as Vitamin K2 and nattokinase."
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