Functional ingredients manufacturer BENEO has announced a €50m ($56m) investment in its Wijgmaal rice starch plant in Belgium to increase the production capacity by 50% to meet the growing demand for its rice starches.

The investment will increase the production line from two to three.

BENEO Speciality Rice Ingredients operations managing director Roland Vanhoegaerden said: “We fundamentally believe in the value of this investment, with demand for rice starch coming from both natural and organic growth, as well as from new projects and applications.

“One of the key reasons for our confidence is the ‘clean label’ trend, wher food manufacturers are moving away from artificial additives and replacing them with natural alternatives, such as rice starch.”

The expansion will be carried out in two stages and is slated for completion in March 2022.

Phase one of the investment will take place at the tail-end of the production process for current lines.

Under this phase, the installation of a third drier and dewatering line will enable the company to boost efficiency.