E-cigs pair reveal £11m manufacturing investment

E-CIGARETTE pioneers David Newns and Chris Lord have returned to the sector with an £11m co-investment in a new manufacturing site in Speke.

The pair have teamed up with German nicotine supplier Contraf-Nicotex-Tobacco to build Europe’s largest outsourced manufacturing facility for nicotine products.
 
Newns and Lord sold their e-cigarette business C N creative – owner of the Intellicig brand – to BAT in 2012, have set up a business called Nerudia with the German firm.

The new facility, will focus on the development, production, testing and regulatory compliance of nicotine products specifically for the fast-growing e-cigarette market, supplying brand owners rather than consumers.
 
The new venture, based on Physics Road at Southern Gateway, will occupy an 80,000 sq ft facility which was previously purpose built by a large pharmaceutical company for the manufacture of inhaled medicines.
 
The business, which will be fully operational by January 2015, is currently recruiting for 30 roles and expects to create up to 150 jobs in the first three years. It has also secured its first major manufacturing contract and is in advanced discussions with several other e-cigarette brands.  
 
E-cigarettes, also known as vaporisers, have grown rapidly since their inception just over a decade ago. The global market is now estimated to be worth £1.8bn, and is growing at 70% per year.
 
David Newns, chief executive officer of Nerudia, said: “A new EU Directive will come into force in 2016 creating a new and welcome regulated environment for e-cigarettes. Many of the requirements of the new regulation surround the “quality” of e-cigarettes and their contents.  

“The knowledge that we have gained over the past six years of working with the UK and other regulators enables us to offer a unique service to help companies through the process of new regulation.
 
“Our new facility will offer the expanding market a fully-outsourced, best-in-class nicotine product manufacturing service providing e-liquids and capsule filling, thus enabling e-cigarette companies to focus on their sales and marketing in this rapidly growing sector.”
 
Torsten Siemann, managing director of Contraf-Nicotex-Tobacco added: “Nerudia is an exciting opportunity for CNT allowing us to expand our integrated supply chain further.

“In addition to the supply of ultrapure nicotine made in Switzerland, we will be able to support our customers throughout Europe in their quest to comply with the impending EU regulations that will be in force from 2016. With Nerudia we will in the position to offer our tobacco as well as our pharmaceutical customers access to world class innovation and manufacturing expertise in this new and fast moving category.”