Pharmaron to Invest RMB 3B in Shaoxing Shangyu Site Phase 2, Adding 200 t/y of High-End API Capacity

The project covers 253.7 mu with total investment of RMB 3 billion and will add 200 tonnes per year of high-end pharmaceutical intermediates and APIs, with Phase 1 slated to start production in June 2028. It is Pharmaron's second major capacity investment this year, following an ~RMB 2 billion R&D and manufacturing site signed with Hangzhou's Qiantang District in May.

RMB 3 Billion Project Breaks Ground in Shangyu

Pharmaron's Shaoxing Shangyu Site Phase 2 project has broken ground in the Hangzhou Bay Shangyu Economic Development Zone, Zhejiang Daily reported on September 15, 2026. The project covers 253.7 mu of land with total investment of RMB 3 billion and will produce 200 tonnes per year of high-end pharmaceutical intermediates and APIs, focused on innovative-drug products. Phase 1 is scheduled to start production in June 2028.

Project lead Song Hang said Shangyu offers a solid industrial base and a complete supply chain, with local authorities stepping in early during permitting — taking only one month from land acquisition to construction start. Once fully ramped, the project is expected to generate annual revenue of RMB 3 billion and tax payments above RMB 250 million, supporting more than 2,000 jobs across the supply chain.

Closing the Delivery Gap Behind Order Growth

The investment is not isolated. In May 2026, Pharmaron signed with Hangzhou's Qiantang District to invest about RMB 2 billion in a new R&D and manufacturing services site — bringing this year's total to roughly RMB 5 billion. In its 2026 interim report, Pharmaron reported H1 revenue of RMB 7.595 billion, up 17.92% year on year, with CDMO services revenue of RMB 1.884 billion, up 32.78%. New orders in the CDMO segment grew more than 50% year on year, with 45 process performance qualification (PPQ) and commercial projects in hand; the company subsequently raised its full-year revenue growth guidance to 15%–20% from 12%–18%.

The mismatch between capacity build-out and near-term earnings is notable. With heavy capital expenditure, rising depreciation and higher costs from overseas sites and senior hiring, H1 net profit attributable to shareholders rose only 6.96% to RMB 750 million. Adjusted non-IFRS net profit, however, reached RMB 909 million, up 20.29% — a truer picture of underlying operations.

Industry-wide, this round of small-molecule CDMO capacity expansion is broad: WuXi AppTec's chemistry business grew 53.3% in H1 to RMB 24.99 billion, while PharmaBlock and Apeloa are also expanding. Yet divergence is equally clear — while Pharmaron and PharmaBlock add capacity, Porton terminated its Slovenia project with a RMB 330 million impairment, and Lonza and Catalent have been trimming and refocusing their networks. The sector is shifting from broad-based expansion to structural opportunity.