Nature-based ingredient supplier CP Kelco is investing in the expansion of its gellan gum production capacity to support growth in the Asia-Pacific region. Scheduled to break ground in July, the expansion project will build new production capabilities at the CP Kelco biogums facility in Wulian, China.

“CP Kelco’s continued investment in expansion of production capacity demonstrates our ongoing commitment to building supply of our high-quality, nature-based ingredients ahead of market demand,” says Didier Viala, President of CP Kelco. “With the addition of gellan gum production capabilities at our Wulian plant, we will bring supply of this highly functional, innovative product closer to our customers in the Asia-Pacific region.”

“We expect the additional gellan gum production capacity in our Wulian, China plant to become available by the end of 2020,” Jérôme Béra, Senior Vice President, Global Marketing at CP Kelco, tells. “We continue to see growth for gellan gum across Asia-Pacific in both dairy products and alternative protein beverages, such as drinking yogurts. While dairy products have grown in popularity in recent years, we anticipate increasing demand for dairy alternative drinks in China and other key markets in Asia over time.”

Viala added that multiple supply points – including the company’s biogums production facilities in North America – enhance CP Kelco’s flexibility to meet global demand variability and mitigate potential supply chain risks.

As a key ingredient in the company’s portfolio of fermentation-derived products, gellan gum provides stabilization, suspension and texture in a variety of food, beverage and personal care applications. Since introducing gellan gum to the industry in 1978, CP Kelco continues to seek to connect the science of nature to label-friendly product innovations that evolve with global and regional market needs.

Headquartered in Atlanta, Georgia, US, and part of J.M. Huber Corporation, CP Kelco is a leading producer of specialty hydrocolloids with offices and facilities across the globe. Key product lines are gellan gum, pectin, xanthan gum, CMC/cellulose gum, carrageenan, diutan gum and microparticulated whey protein concentrate, as well as other unique biopolymers.

Last month, CP Kelco signed an agreement extension with its partner, specialty chemicals supplier Azelis, for the exclusive distribution for CP Kelco products sold into food and beverage applications in Denmark, Sweden, Norway, Finland, Iceland and the Faroe Islands. Effective June 23, 2019, this new mandate, that includes pectin, carrageenan, gellan gum and SIMPLESSE microparticulated whey protein concentrate, follows on the existing cooperation of CP Kelco and Azelis in parts of Europe and Asia.

The agreement with CP Kelco is in line with Azelis’ strategic ambition to expand existing partnerships into new territories, says the company.