Tate and Lyle Announcement- 17 December 2002
Tate & Lyle PLC today announced plans to develop and manufacture a new range of products based on its world-leading fermentation capability. An efficient proprietary process, newly developed by Tate & Lyle's Research & Development team, will be commercialised to produce Xanthan Gum and other related bio products from carbohydrate feedstock.
Xanthan, which currently has a global market that totals more than $250 million, is used extensively as a food ingredient, offering thickening and gelling properties. It also has a number of important industrial applications in coatings, pharmaceuticals, adhesives, cosmetics and oil well fluids.
The phase-one plant will be added to existing facilities in Decatur, Illinois. First product from the plant is expected to be commercially available within approximately 18 months. It is anticipated that full-scale capacity will be added in subsequent phases, dependent on market conditions.
"This move is in line with our strategy to grow Tate & Lyle's valued added carbohydrate-based ingredients," Simon Gifford, Tate & Lyle Group Finance Director said. "We already supply the world's major branded food companies with a range of high-quality ingredients. This development will widen our product base using our existing sales, technical and distribution teams as well as providing an important testing platform for fermentation developments coming out of our global Research and Development team."
Cargill announces entry in xanthan
Cargill has announced a joint venture with Shandong Huanghelong Group in Zibo, Shandong Province, PRC, for the production, and worldwide sales and marketing of xanthan gum.
The venture is a 50/50 split between Cargill and Shandong. Cargill will bring expertise in large scale fermentation, quality assurance and access to a worldwide sales capability whereas Shandong will provide a cost effective manufacturing base for xanthan.
Cargill commented that xanthan was a nice addition to their food texturing strategy along with the starch products they already produce.