CP Kelco Signs Deal With BCI for Xanthan Gum Facility in Saudi Arabia

18 Sep 2013 --- Basic Chemical Industries Co. (BCI) has signed a memorandum of understanding with CP Kelco for jointly building and operating a xanthan gum facility to be located in Jubail.

Subject to further engineering feasibility, the plant will have a production capacity of between 5,000 and 10,000 tons. This capacity will be dedicated to oilfield application markets both within the Kingdom as well as for export. The main client for local consumption of the gum is Saudi Aramco, the world largest oil producer, and Saudi Arabia National Oil Company.

CP Kelco headquartered in Atlanta, Georgia, USA, is a major producer of specialty hydrocolloids with offices and facilities across the globe. Featuring an extensive range of specialty hydrocolloid solutions, CP Kelco leverages its capabilities to bring concepts and ideas to real-world products in a broad range of applications.

Serving over 100 countries, CP Kelco established the quality and safety standards the industry is measured against. CP Kelco ingredients touch a wide variety of industrial applications, consumer and household products, tailored to meet the needs of regional consumers. Key product lines are gellan gum, pectin, cellulose gum, xanthan gum, carrageenan, arboxymethyl cellulose, diutan gum and microparticulated whey protein concentrate, as well as other unique biopolymers.

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.

BCI is the parent of six subsidiaries, producing many basic chemicals in Saudi Arabia, including chlorine, caustic soda and hydrochloric acid, as well as some speciality chemicals.