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Joint venture hailed in Liverpool

CN Creative founders Chris Lords and David Newns plan to team up with German firm Contraf-Nicotex-Tobacco (CNT) to build an installation in Liverpool for “the development, production, testing, and regulatory compliance of nicotine products,” according to Insider Media. The joint venture, called Nerudia, will support a wide array of manufacturers and brand owners in the burgeoning electronic cigarette industry.

Headquartered in Heilbronn, Germany, CNT is a major supplier of pharmaceutical grade nicotine, one of the world's largest, in fact. The 11GBP-million venture is expected to help vaping supplies firms comply with anticipated EU and MHRA requirements in the coming years, according to managing director Torsten Siemann. "Nerudia is an exciting opportunity for CNT,” says Siemann, “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."

Newns and Lords have collaborated with each other before this. Their firm CN Creative fielded one of the first electronic cigarettes in Britain, the brand Intellicig, which they sold to British American Tobacco two years ago.

By focusing on out-sourced production of top quality e-liquids, and on capsule filling, the company will allow vaping supplies firms to concentrate efforts on sales and marketing.

"The growth of the vaporiser market has been a modern phenomenon,” says CEO Newns, “but with that growth has come an increasing focus on key areas of product innovation quality and reliability."

The facility, located in the town of Speke, will employ 30 workers at the outset, and plans to expand to a workforce of 150 in the future. It has already received its first manufacturing contract.

This new international venture may go a long way toward calming fears that the medicalisation of vaping, planned by Britain's Medicines and Healthcare Products Regulatory Agency (MHRA), and the impending implementation of the Tobacco Products Directive (TPD), passed earlier this year by the Parliament of the European Union, will swamp fledgling companies with burdensome certification requirements.

The expectiation is that Nerudia will ease the regulatory burden.