Chinese potato starch firm ups production

By staff reporter

- Last updated on GMT

Related tags Starch

Chinese potato starch producer China Essence is ramping up capacity with the construction of two new facilities, expected to be completed this autumn.

The company, which was established in 2001 and listed in Singapore in 2006, specialises in starch and starch-based products like vermicelli and noodles, as well as potato protein and fibre. Its flagship product is a 5-grain noodle which is said to be smoother, stronger and more elastic than traditional noodles, a mainstay of the Chinese diet.

As well as the food sector, it produces some 18,000 tonnes of modified starch a year which is used by the textiles, paper, adhesive, oil, mining, pharmaceutical and personal care industries.

Northeast China and Inner Mongolia, where it has its facilities, are prime potato-growing regions. The two new facilities are being built in Nenjiang in Heilingjiang, and in Zhalantun, Inner Mongolia, and will have a combined capacity of 80,000 tonnes a year.

The news, announced today in an update of business operations, comes on the back of a scheme announced in 2008 to double potato protein production to 160,000 tonnes a year. Potato fibre production is also increasing to 160,000 tonnes a year.

In January, China Essence made it onto the Forbes list of China’s fastest-growing companies. It achieved 25th place out of 200. Since 2004 it has boasted ISO-certification.

The company reported its Q3 financial results in February: Revenue was RMB314.0m, representing an 11 per cent decline on the prior year period but a 39.5 per cent quarter-on-quarter increase.

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