Hydrocolloid expansion for Cargill
Cerestar, made further steps to increasing its texturiser business
when the company announced this week its intention to form a 50/50
joint venture with Chinese company Shandong Huanghelong Group (SHG)
for the production, sales and marketing of a rapidly growing
hydrocolloid - xanthan gum.
US agri-giant Cargill, the new owner of French starch company Cerestar, made further steps to increasing its texturiser business when the company announced this week its intention to form a 50/50 joint venture with Chinese company Shandong Huanghelong Group (SHG) for the production, sales and marketing of a rapidly growing hydrocolloid - xanthan gum.
According to Cargill, the primary aim of the joint venture is to focus on the opportunities offered in the food applications market.
"Entry into the xanthan gum business is an important milestone in the development of our texturiser strategy.
Its functional versatility in a wide range of food, beverage and pharmaceutical applications is a nice complement to our existing portfolio of food starches and starch derivatives," said R. Creager Simpson, president of Cargill's Food & Pharma Specialties business unit, which is part of Cargill's Food System Design platform.
" It will provide greater opportunities for SHG to expand our production of xanthan gum to meet the needs and standards of a world wide market," added Wang Feng, CEO and chairman of Shandong Huanghelong Group.
Under terms of the agreement the large-scale fermentation knowledge, quality assurance methods and procedures, and worldwide market access of Cargill will meet the manufacturing base, and the in-depth knowledge of operating a business in China that SHG possesses.
"Xanthan gum is a cornerstone ingredient which expands our capability to develop integrated food systems to deliver better taste, convenience and health benefits to consumers," said Robert Parmelee, president of Cargill Food System Design. "We're excited about the alignment with SHG and what it will mean for our customers."
