Provider of ingredient solutions Ingredion has announced the completion of one-third of its US$160 million in capital investments to significantly expand capacity for a range of modified and clean label specialty starches across its global supply chain.
At the company’s June Investor Day, its leadership team announced $160 million in capital investments through 2024 to expand and increasingly localise its production capacity to meet customers’ growing demands for specialty starches that provide texture for taste along with formulating and label-friendly options for food and beverages.
In September, Ingredion also announced that it had opened a state-of-the-art manufacturing facility in Shandong, China, which has more than doubled its starch production capacity and capabilities in the country.
“Over the last year and a half, we have seen strong customer demand recovery for our starch solutions in both food service applications as well as traditional packaged food and beverages. In addition, the Ukraine conflict has disrupted corn and other grain markets, which has forced an increase in the cost of many food ingredients,” said Pierre Perez y Landazuri, Senior Vice President of Corporate Strategy, Specialties and the President of EMEA. “During this time, as customers managed the challenges of rising formulation costs, they have looked to specialty starches given their versatility and affordability relative to other ingredients.”
In addition to providing capacity expansion for future growth, the moves are being made to reduce long-term delivered cost while taking into account the environmental footprint of products being sold to companies. The company announced its engagement with HowGood, a data platform of sustainable food, beverage and personal care product offerings.
“In addition to releasing capacity through continuous improvement initiatives, the investments we have announced will enable us to meet the heightened demand more sustainably for our customers with increased local sourcing in the US, Europe, and Asia-Pacific. These investments are improving our global supply chain flexibility for corn, waxy corn, tapioca, potato, and rice-based specialty starches. The actions we are taking combined with our deep market expertise, technical knowledge and decades-long experience innovating with specialty starch solutions will continue to make us a trusted partner for our customers,” concluded Perez y Landazuri.
Read more latest industry news and developments in our free to download magazine.