Galactic expands in China

A further sign that food ingredients companies are moving steadily into the Chinese market came recently with the announcement from Belgian lactic acid manufacturer, Galactic, that it has signed a joint venture agreement with Chinese company BBCA Biochemical to establish a lactic acid and derivatives manufacturing unit in China.

The new plant, to be integrated into an existing corn-based glucose production site, is due to start production in early 2003 and will have a production capacity of 30.000 metric tons, expandable to 50.000 metric tons per year. The joint venture will produce, market and sell the products in the Chinese domestic market as well as abroad.

Frederic van Gansberghe, Galactic's​ managing director said: " BBCA's wide knowledge, experience and structure combined with Galactic's know-how and technology will lead the B&G joint venture to reach a privileged market position and therefore to better serve and satisfy its customers."​

Roger Li, BBCA​ biochemical chairman added: "With the entry into the WTO, China's economy will grow rapidly and people's well-being will improve simultaneously. We expect the food and pharmaceutical industries to develop significantly and quickly, supporting the market for L(+) lactic acid."​

In a recent statement both companies claimed that further expansions will enable the joint venture to follow the market growth and to provide lactic acid to polylactic acid (PLA), a biodegradable polymer derived from lactic acid, projects.

BBCA produces starch, citric acid and sweeteners from cereal grains. Galactic claims to be the second largest producer of lactic acid and derivatives in the world and exports to more than 50 countries.