Niutang to begin production at new 1,200t sucralose facility by the end of March

01-Mar-2013 - Last updated on 02-Mar-2013 at 00:19 GMT

Chinese high intensity sweeteners specialist Niutang Chemical says its new 1,200 metric ton capacity sucralose facility will begin production before the end of this month, with deliveries beginning in the second quarter of 2013.

This is the company’s fourth expansion in five years, said Licheng Wang Jr., General Manager of Changzhou Niutang, who said the new capacity will allow it to meet growing demand and supply all varieties of sucralose (granular, micronized, liquid etc).

“Our new sucralose facility includes new technologies, automation and process improvement steps to ensure we are managing overall production costs.”

A spokeswoman told FoodNavigator-USA: "Niutang’s growth has been fueled by extremely high demand for our sucralose, although we do not publicly disclose our growth per product for competitive reasons. Many companies are transferring their sucralose requirements to Niutang because of the high level of quality and service we provide.

"We are also experiencing category and development growth in the double digits. Our competitive price allows our customers to develop products at a reasonable price."

18% sales growth in 2012

Niutang is one of several Chinese manufacturers cleared of infringing market leader Tate & Lyle’s sucralose production patents in 2009 along with JK Sucralose, which says capacity at its facility in Jiangsu Province is currently 1,500tons, but will increase to 1,800 tons by the end of year. Tate & Lyle does not disclose is capacity figures.

Niutang - which has sales offices in the US and Europe - is also expanding production of L-phe (L-phenylalanine) in order to minimize production costs for aspartame, said the firm, which posted an 18% rise in sales in 2012.

“Once our L-Phenylalanine plant is up and running, we will have even more flexibility to offer our customers high-quality, cost-efficient aspartame.

“ In addition, our expanded offerings of natural high intensity sweeteners allow our customers the flexibility of introducing stevia and monk fruit into their portfolio of products.”

2 comments

Chiese sucralose pruducers thanks to Late&Tyle

Posted by Peter Zou, 07 March 2013 - 18:53 GMT

I would really thank Tyle&Lyle for its creation of Sucralose and the market of it, without Lyle@Tate ,the three biggest Chinese sucralose producers would take another one hundred years to figure out how to do start up. As the Chinese sucralose producers develop their own technology and catch up in marketing, what Tate&Lyle can do is to diversify the market and improve branding effects, rather than raising legal battles life Apple and Samsung, otherwise, it is going to hurt the sucralose market as a whole. As we know, Techno Sucralose, the third largest in China, has been keeping effects in growing its China market with new ways to applying sucralose in different industries, from beverage to nutritional, this successes is partly due to the fact its sucralose tastes more similar with sugar, very well accepted by the Asian and American market. It is also interesting to notice that the American distributors prefer Techno sucralose not only because of its good tasting quality, but also its low key profile in the price competition in North America. Of course, the less price competition, the more likely to create better product quality and stable market for all.

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How to evaluate sucralose market trend

Posted by Peter Zou, 07 March 2013 - 18:20 GMT

The booming of sucralose is not limited to North America areas, it also benefits from Europe and China markets. As production grows, sucralose is no longer a luxury for the food and beverage industry, it is replacing other non-nutritional sweeteners and sugar worldwide. The three biggest sucrlaose manufacturers of China,i.e, JK, Techno and Niutang, are proactively taking over the original market after the well known 377 case settlement, and are expending to new markets like Europe and East and South Asia. No doubt they have a cost advantages, but how long this advantage will last remains to be seen. The best policy they can share is to diversify their products and markets, protect their profit margins while creating more room for their production capacity.

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