Citric acid expansion

19 July 1999 00:00  [Source: ICB]

Swiss company, Jungbunzlauer, is to build a world-scale citric acid facility in Canada after signing a long-term raw materials supply deal with local firm Casco. The plant will be built in Port Colborne, Ontario, adjacent to Casco's corn wet milling facility where Jungbunzlauer will process fermentation feedstock supplied by Casco into citric acid.

The plant, which will use Jungbunzlauer's proprietary technology, is expected to be operational by the end of 2001. Construction contracts will be awarded by the end of this year to a mix of local and international contractors. The company declined to reveal capacity or investment details.

The new production will primarily serve markets in America. 'During the last few years, we have experienced a considerable growth in demand for citric acid. Only by increasing our production capacities will we be able to secure sufficient product supply for our customers,' said Rolf Soiron, Jungbunzlauer's chief executive officer.

The company also said that the location will allow it to keep its raw material and logistics costs down. Other fermentation products are planned to complement Port Colborne's capacities.

Jungbunzlauer said that the long term growth rates for citric acid are 4.5-5.5%/year in a global market of 900 000 tonne.

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