Danisco expands Xylitol and Xylose production in China
Danisco A/S has entered into an agreement with Henan Tangyin Yuxin Co., Ltd. regarding the establishment of a joint venture company to produce Xylitol and Xylose for the Chinese and international markets. The joint venture expands Danisco´s presence in China where the company already produces a broad spectrum of ingredients for the global food and pharma markets.
Danisco A/S has signed a joint venture agreement with the Chinese company Henan Tangyin Yuxin Co., Ltd. The joint venture, which gives Danisco a majority share, will manufacture Xylitol and Xylose. Yuxin´s production facilities (which will be transferred to the joint venture) have been expanded substantially over recent years, and Danisco expects that this, in addition to ongoing investments in Danisco´s European and US Xylose and Xylitol production, will allow Danisco to maintain and expand its product leadership in this premium area of the food ingredients market.
"We wish to participate in growing markets and to seek profitable opportunities for growth, both in terms of production and sales. Many of our Western customers now produce in China for the Chinese market and so it is logical that we should also be there," Pekka Sorsa, President of Danisco Sweeteners comments.
"Xylitol is a key product within the Danisco Sweeteners product portfolio. Through this investment Danisco Sweeteners will add substantial additional volume to their capacity and can access the lower costs that the Chinese market offers. We have also had the opportunity to utilise new and improved technology to further increase the production efficiency. The Chinese market for Xylitol is expanding rapidly," says CEO at Danisco, Alf Duch-Pedersen.
The new company is to be called Danisco Sweeteners (Anyang) Co. Ltd and will have a board of directors in which Danisco will have the majority.
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