Borculo Domo ramps up efforts to tap US market

The new agreement represents a significant acceleration of the Dutch company's efforts to grow its US business, which by its own admission has been limited in terms of marketing, consisting of some direct marketing and smaller distribution deals.

Univar USA is a subsidiary of the Netherlands' based Univar NV, one of the world's largest chemical distribution firms with annual revenues of $4.7 billion (€3.9bn) in 2003 and operating income of $117 million last year.

At present, Borculo Domo's strength lies in Europe and Asia, and it claims a top three position in most of the countries in which it operates. The Univar deal will help it improve its standing in the US where it expects great demand for its direct compression and inhalation lines.

A spokesman declined to reveal what level its sales in the US are at present, or indeed speculate on the impact of the Univar on its pharmaceutical lactose sales. However, he suggested that a stronger US would make it easier for Borculo Domo to service act as a single supplier of multinational pharmaceutical companies.

Under the terms of the agreement, Univar will be able to supply a complete range of pharmaceutical lactose products in the US, regardless of the customer's produce needs or plant location, according to the two companies.

Borculo Domo is especially well known for its extensive range of lactose products for direct compression tabletting, including a full line of spray-dried and anhydrous lactose, and claims to be the market leader in lactose for dry powder inhalation.

Borculo Domo operates as part of the global dairy company Friesland Coberco Dairy Foods. All its pharmaceutical lactose products are manufactured at the production site in Borculo, the Netherlands. BDI has a dedicated pharmaceutical plant, which enables BDI to develop any customer specific lactose product.