The Dutch multination will also establish a global innovation centre for hydrocolloids adjacent to its gellan facility in Zhejiang province. Both manufacturing upgrades are expected to be completed in 2016, while the innovation centre should open in the third-quarter of 2017.
The expansion of DSM’s current gellan plant in Tongxiang is the result of increasing domestic demand for a reliable supply of naturally fermented gellan gum, which plays a critical role as a stabilising and texturising agent in many foods and beverages.
Meanwhile, pectins, which DSM manufactures at its Andre Pectin facility in Yantai, Shandong province, are used in a wide variety of applications such as jams, confectionery, dairy drinks, yoghurts and nutritional supplements. Demand for the ingredient is being driven by the rising popularity of natural foods and beverages among consumers, the company said.
“With these significant investments, we complete another strategic milestone to increase capacities and tremendously boost our hydrocolloids innovation competence,” said Xiangwei Gong, global director of the DSM hydrocolloids business unit.
“These steps are an integral part of DSM’s strategic roadmap for hydrocolloids, and further demonstrate our firm commitment to be the fastest growing and one of the most important global hydrocolloids players.”