CP Kelco announced today an expansion of their San Diego facility which will expand capacity by roughly 40 percent. Recent investments are in the final stages of implementation. The investments are aimed at increasing the availability of domestically produced xanthan gum.This expansion will extend CP Kelco’s ability to meet growing customer demand for xanthan gum following a recent determination by the U.S. government against Chinese and Austrian imports. John Breese, Plant Manager, San Diego Facility states, "These latest investments allow us to achieve record-high production rates while maintaining the industry-leading standards in quality and safety we pioneered for xanthan gum."
Earlier in January, the U.S. Department of Commerce announced preliminary anti-dumping tariff margin rates against Chinese and Austrian xanthan gum manufacturers covering all xanthan gum imports into the United States. This action followed U.S. International Trade Commission's unanimous vote in August 2012 that injury had occurred to domestic producers of xanthan gum because of low-priced Austrian and Chinese product being sold in the U.S. market.
"CP Kelco is committed to supplying xanthan gum to support the U.S. industry. This investment further ensures our ability to supply high-quality, safe and fairly-traded xanthan gum," said E. Charles Bowman, Vice President of Marketing for CP Kelco. "As the investigation unfolds and information becomes available, additional expansion plans will be considered."
U.S. Customs and Border Protection began collecting cash deposits equal to the assigned margins as published in the Federal Register on January 7, 2013. For additional information regarding the xanthan gum investigation, please visit https://iaaccess.trade.gov/login.aspx. (A username and password are required, but anyone can apply to the DOC to get one and be considered "Guest Users").