Local acquisition will vertically integrate Ingredion’s China business
Ingredion has completed the acquisition of Shandong Huanong Specialty Corn Development in China from Pingyuan County Juyuan State-Owned Asset Management for an undisclosed sum.
The acquisition gives Ingredion a second Chinese manufacturing facility. It will produce starch raw material for the company’s plant in Shanghai, which makes value-added ingredients.
The plant will help the ingredients major to vertically integrate its manufacturing base for speciality ingredients while reducing costs. It will also give the company more control of its supply chain, with added food safety and sustainability benefits, Ingredion said in a statement.
“The facility is strategically located in an ideal growing area for the specialty grains used to make our ingredients. And, it provides a base for expansion to accommodate future growth,” said Jorgen Kokke, Ingredion’s regional president.
