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CP Kelco acquires Gold Millet

CP Kelco announced today that they had acquired 100% of the Shandong Gold Millet Biological Products Company, one of the many xanthan producers in China.

In recent years the xanthan market has changed dramatically with the emergence of a large number of new manufacturers based in China. This has led to consequent severe price pressure and a steadily falling xanthan price compared to the heady days when only a small number of US and European companies dominated the market.

Today CP Kelco are still the largest xanthan manufacturer but the number two slot now belongs to a Chinese producer with the other western suppliers a long way behind.

This announcement cements CP Kelco's position as the number one supplier of xanthan.

The full announcement reads:

When the acquisition closed March 7, Gold Millet became known as CP Kelco (Shandong) Biological Co. Ltd. Gold Millet's GMXAN and GMZAN xanthan gum products will retain their brand names and join the CP Kelco family of biogums products.

"With the acquisition of Gold Millet, CP Kelco is the only xanthan gum manufacturer with plants in the Americas, Europe, and Asia," says Tom Lamb, CP Kelco's President and CEO. "Our expanded global footprint brings our products closer to our customers in emerging markets and contributes to our continued leadership in xanthan gum production and quality."

Owned by J.M. Huber Corporation, CP Kelco is a leading global producer of specialty hydrocolloids, with more than 2,000 customers in over 100 countries, and facilities in North America, Europe, Asia and Latin America. CP Kelco produces xanthan gum, pectin, carrageenan, and carboxymethlyl cellulose (CMC), the most widely-used cellulose ether in the world. For more information see www.cpkelco.com.

CONTACT: Mike Size Biogums Business Unit Director Tel: (312) 554-7886