CP Kelco Plant Expansions Support and Drive Pectin Growth

17 Feb 2014 --- Specialty hydrocolloids manufacturer CP Kelco has announced plans for a ‘significant investment’ to expand its manufacturing facility in Limiera, Brazil, in a bid to meet the fast-growing global demand for pectin.

Approved in late 2013 by both the CP Kelco Management Board and the Board of its parent company, J.M. Huber Corporation, this latest investment is projected to increase capacity by 30% at Limeira. This announcement follows other recent projects underway in Limeira and at CP Kelco’s manufacturing facility in Lille Skensved, Denmark. These earlier projects are set to conclude and become fully operational in 2015.

“As a leader in pectin technology, we see tremendous opportunity in this market space,” said Susanne Sörgel, strategic platform director for CP Kelco’s Pectin product line. “The additional capacity will allow us to meet the growing demand for pectin in application segments such as beverages, confectionery and dairy products.”

According to Sörgel the recent series of investments in production capacity signals CP Kelco’s strong commitment to advancing pectin’s use as a high performance ingredient in foods and beverages, both in developed economies and emerging markets. “These projects will combine to ensure that CP Kelco can support its customers’ growth well into the future,” Sörgel said.

CP Kelco, which is owned by JM Huber Corporation, is a leading global manufacturer and marketer of specialty hydrocolloids, with facilities across Europe, North America, Asia and Latin America. The company, which is headquartered in Atlanta, Georgia, USA, has an extensive range of specialty hydrocolloid solutions with product lines that include pectin, xanthan gum, carrageenan and cellulose gum, among others.

The ‘good for you’ properties of hydrocolloids are gaining visibility, according to the results of a business development forum: Food Hydrocolloids 2013, held by IMR International last year. The event highlighted the fact that differentiation between soluble and insoluble fibers and their respective benefits are entering consumer dialogue. Pectin, and others, are all in the process of developing nutritional and nutraceutical awareness with consumers.

At the end of last year CP Kelco signed a memorandum of understanding with Basic Chemical Industries Co. (BCI) for jointly building and operating a xanthan gum facility to be located in Jubail. The plant will have a production capacity of between 5,000 and 10,000 tons. The main client for local consumption of the gum is Saudi Aramco, the world’s largest oil producer, and Saudi Arabia National Oil Company, the company said.

Xanthan gum is a thickening agent commonly used in drilling mud. BCI and CP Kelco say that the xanthan gum the new plant produces will be sold to local oil companies, primarily Saudi Aramco, but some will also be exported.

Xanthan gum is produced through a fermentation process using a sugar source and the bacterium Xanthomonas campestris. CP Kelco produces several grades of xanthan gum for use in food, pharmaceuticals and personal care products, as well as for oilfield applications, at its other sites. The Jubail plant will produce xanthan gum solely for oilfields.