CP Kelco announced today a series of global price rises across their hydrocolloids portfolio. Carrageenan and pectin sees the biggest prices rises (8%) whereas the biogums are lower at 3-5%. At a time when it is widely believed that Chinese penetration of the xanthan market may have reached a plateau due to technical differences between western and Chinese xanthan grades such a price rise might be achievable in the short term.
The full report reads:
ATLANTA--Oct. 25, 2006--CP Kelco today announced global price increases up to 8% across its product range of carrageenan, carboxymethyl cellulose (CMC), gellan gum, pectin and xanthan gum. The following changes are effective December 1, 2006 or as contracts allow.
- CMC products will be raised by 5-8% across all market segments.
- Pectin and refined carrageenan will be raised up to 8% across all markets.
- Biogums (xanthan gum, gellan gum, welan gum and diutan) will be raised between 3-5% across all market segments.
"Following a series of aggressive campaigns to reduce our costs, which include streamlining our production assets, we continue to see sustainable increases in critical raw materials, energy and freight costs that negatively effect our operating margins," said Rick Calk, VP of Commercial Operations.
CP Kelco has made a serious commitment for the continued investment into the hydrocolloids industry by creating new products and bringing high performing products to our customer. Recently CP Kelco announced increased investments into China for a new CMC facility and increased capacity from our biogums facility.
"These investments, coupled with continuous improvement projects in our pectin and carrageenan businesses, ensure both our product offering and infrastructure are in place for a sustainable long-term growth", says Calk. "This price increase allows us to continue a serious focus on new technology development while we maintain superior service levels to our customers."
Further details can be obtained from CP Kelco at: CONTACT: CP Kelco Richard E. Calk V.P. - Commercial Operations +1 678 247 7489 firstname.lastname@example.org