Hydrocolloids firm CP Kelco has said it will invest a further 60m Danish krone (€8m) to expand its facility in Lille Skensved, Denmark, on the back of increased demand for its amidated pectin, used in low sugar and sugar-free foods.
The investment comes on the heels of an initial investment of 15m Danish krone (€2m) to put the infrastructure in place for later expansions, the company said, with the expansion project expected to be completed in June next year. The announcement comes at the same time as the company is expanding its pectin business in Limiera, Brazil.
Industrial pectin can be produced from apple pumice or citrus peel, and CP Kelco’s products are made from citrus, including orange, lemon and lime peel. Its GENU-brand amidated pectin is used in a range of low sugar and sugar-free products, such as jams, fruit preparations for yoghurt and thermo-reversible bakery glazes, and the company says the ingredient has rapidly increased in popularity, partly driven by its natural association with fruit and fruit pulp.
“GENU pectin continues to show good market growth due to its functionality in fruit and yoghurt products, where it enables production of jams and fruit spreads with a low-sugar and high-fruit content,” said Susanne Sörgel, strategic platform director for pectin.
CP Kelco claims its Lille Skensved facility is already the largest pectin plant in the world, and it also produces pectin in Germany, as well as in Brazil. It says this latest expansion will help it keep up with the ingredient’s growing popularity.
“This expansion ensures that CP Kelco will remain well positioned to meet our customers’ needs both now and in the future,” Sörgel said.
Plant manager Jørn Stryger added: “Our competent employees in Lille Skensved have the required knowledge and skills to produce this specialty type of pectin, and in a time where many companies are moving production out of the country, CP Kelco has chosen to expand in Denmark.”