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.
ICIS Copyright © Reed Business Information 2009
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