One-third of the USD160m in capital expenditures made by Ingredion to considerably increase capacity for a variety of modified and clean label specialty starches throughout its worldwide supply chain has been completed.
In order to meet the growing demand from customers for specialty starches that provide texture for taste as well as formulating and label-friendly options for food and beverages, the company’s leadership team announced USD160m in capital investments through 2024. These investments will be made to selectively expand and increasingly localize the production capacity of the company. A state-of-the-art manufacturing plant in Shandong, China, opened in September, more than doubling the company’s capacity and capabilities there for starch production.
“Over the last year and a half, we have seen strong customer demand recovery for our starch solutions in both foodservice applications as well as traditional packaged food and beverages. In addition, the Ukraine conflict has disrupted corn and other grain markets, which has forced an increase in the cost of many food ingredients. During this time, as customers managed the challenges of rising formulation costs, they have looked to specialty starches given their versatility and affordability relative to other ingredients,” said Pierre Perez y Landazuri, senior vice president of corporate strategy, specialties and the president of Europe, the Middle East and Africa (EMEA).
The steps are being taken to minimize long-term delivered cost while taking into account the environmental impact of the products being sold to customers, in addition to offering capacity expansion for future growth. Recently, the company declared that it has become the first significant producer of food components to interact with HowGood, the largest database of sustainable food, beverage, and personal care product offers in the world. The partnership will boost the transparency of the company’s ingredients and provide its clients more freedom to develop in response to the rising demand for more environmentally friendly products.