Although terms of the agreement were not disclosed , the new plant, which will be located in the north of the öresund region that straddles Denmark and Sweden, will replace one of Ellco Foods' old units and it is expected to be operational by 2006.
The plant will be equipped with a new manufacturing procedure to cut down the time required to produce gelatine.
' Today it takes almost two months to manufacture gelatine. With the new method, developed by Ellco Foods, the processing time will be shortened down to 30 hours,' writes the report.
The new technology is much more environmentally friendly than the present method used, due to a more efficient processing of the bones, added Thomas Ahlgren, managing director of Ellco Foods.
The Oresund regionis home to a cluster of food additive and ingredients companies Danisco , Arla Foods, Chr. Hansen,, Karlshamns, Lyckeby and Novozymes.
Food is one of the most important industries in the region and growth is forecasted at 2 - 5 per cent annually in the coming years.