Competition in the biogum sector is set to hot up with the news today that US company CP Kelco is looking to boost production capabilities to reinforce its position in the biogums marketplace.
The hyrocolloid leader has come up with a production plan which, according to Robert Toth, president and chief executive officer of CP Kelco, is evidence of the company's 'aggressive commitment to reinforce its global leadership position in biogums, especially in xanthan gum.'
Major components of the plan include continued expansion of the company's Okmulgee, Oklahoma facility, expanded xanthan gum production at its Knowsley, United Kingdom facility and crucially, the termination of a xanthan gum contract manufacturing agreement that originally ran until 2009. According to the company, the early termination agreement will begin yielding benefits immediately.
"As CP Kelcoreduces, then eliminates, the amount of material produced under this toll manufacturing arrangement, we will increase capacity at our existing facilities," said Mike Size, biogums business unit director.
CP Kelco will make additional investments in expanding its 95 acres Okmulgee plant."Our capacity expansion at Okmulgee is significant because itallows us to relocate toll-produced capacity in-house - and that makes production more cost effective," said Size. A key aspect in the company's commitment to becoming 'the industry leader in operational efficiency.'