) SAFC Commercial division has enhanced its continuous flow
capabilities with the installation of a new commercial-scale
continuous flow reactor at its plant in Sheboygan, WI. The reactor
will produce as much as 150 kg of products a day.
The new reactor, which is currently online, has been complemented
by a smaller pilot-scale continuous flow reactor (with capacity to
produce up to 30 kg of products daily), which is being fabricated
at the Milwaukee, WI, plant to conduct process optimization
studies. These reactors are supported by a host of research
reactors based in the U.S. and EU that offer support to customers
from research to commercialization.
With these reactors, SAFC Commercial will be able to develop or
scale up flow reactions for customers, thus eliminating the need to
install in-house flow capacity. This will allow customers to save a
significant amount of money, space and time while minimizing the
amount of chemicals and solvents employed in reactions.
Revenues from SAFC Commercial, Sigma-Aldrich's custom manufacturing
services business unit, went up 3% to $159 million in first-quarter
2014. Sales rose in the low single-digits organically in life
science products business while life science services saw a
double-digit rise on gains in biopharma services. However, SAFC
Hitech sales declined in the low single-digits on pricing pressure.
Sigma-Aldrich's significant investments in sales, marketing and
R&D initiatives are generating demand for its products. The
company is seeking to take advantage of country-specific
opportunities by expanding its presence in high-growth emerging
markets. It is actively expanding its foothold in the Asia-Pacific
region, especially in the fast-growing emerging markets of India
However, Sigma-Aldrich's research business, especially with large
pharmaceutical companies, is expected to continue to face
challenges due to weak academic spending in the U.S. and Europe.
Uncertainty surrounding academic funding (in particular in the
U.S.) is expected to sustain through first-half 2014.
Sigma-Aldrich is a Zacks Rank #3 (Hold) stock.
Other companies in the specialty chemicals space with favorable
Zacks Rank include
International Flavors & Fragrances Inc.
Sensient Technologies Corporation
) with all holding a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
INTL F & F (IFF): Free Stock Analysis
SIGMA ALDRICH (SIAL): Free Stock Analysis
SENSIENT TECH (SXT): Free Stock Analysis Report
ZEP INC (ZEP): Free Stock Analysis Report
To read this article on Zacks.com click here.