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CP Kelco Announces Expansion

CP Kelco has announced an expansion of the recently acquired Shandong Gold Millet plant in China (see Shandong acquisition).

CP Kelco are the largest manufacturer of xanthan gum and the acquisition of Shandong was a strategically important move to maintain their position in an increasingly competitive market with growing Chinese competition.

The full announcement reads

ATLANTA--June 21, 2006--CP Kelco, the world's leading xanthan gum producer, announces immediate plans to expand capacity of its recently acquired production facility in Shandong Province, China. When complete, the expansion will increase Shandong's current capacity up to 12,000 MT.

According to Ed Gallagher, CP Kelco's Biogums Business Director, "We are extremely pleased with the progress our China Team has made over the past six months and so we have accelerated our expansion plans to produce up to 12,000 MT of KELTROL® xanthan gum." This expansion will enable CP Kelco to continue its aggressive investment into the biotechnology sector while maintaining its market leadership in both innovation and market share.

CP Kelco is a pioneer in the development and commercialization of new bio-fermentation products including KELTROL® & KELZAN® xanthan gum and KELCOGEL® gellan gum and the only xanthan gum manufacturer with plants in the Americas, Europe, and Asia.

CP Kelco remains committed to ensuring supply, as well as to delivering superior product quality, new product innovations, and expanded technical capabilities and service. "As a leading producer of biogums, and the only producer of welan and diutan gum, we will continue to deliver steady supply and consistent, superior product performance for all customers around the globe," says Gallagher. "A great example of our innovation is the 'Most Innovative Food Ingredient' Gold Award, presented to CP Kelco at Fi Europe 2005 for its new generation of GENU® pectin types which -- contrary to traditional pectin types -- forms gels at very low soluble solids at a cost-competitive use level."

Staged alongside Fi Europe 2005, the Most Innovative Food Ingredient Awards are designed to honor the industry's most innovative ingredients, leading-edge technology and prized research. The Fi Europe Awards (Gold, Silver and Bronze) are given in recognition of those organizations that deliver innovation and quality to the manufacture and development of food ingredients.

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.

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