CP Kelco will expand its San Diego facility, increasing it capacity by roughly 40%, the company announced. Recent investments are in the final stages of implementation. The investments are aimed at increasing the availability of domestically produced xanthan gum.
This expansion will extend CP Kelco’s ability to meet growing customer demand for xanthan gum following a recent determination by the US government against Chinese and Austrian imports.
“These latest investments allow us to achieve record-high production rates while maintaining the industry-leading standards in quality and safety we pioneered for xanthan gum,” said John Breese, plant manager, San Diego Facility.
In January, the US Dept. of Commerce announced preliminary anti-dumping tariff margin rates against Chinese and Austrian xanthan gum manufacturers covering all xanthan gum imports into the United States. This action followed the US International Trade Commission’s unanimous vote in August 2012 that injury had occurred to domestic producers of xanthan gum because of low-priced Austrian and Chinese product being sold in the US market.
“CP Kelco is committed to supplying xanthan gum to support the US industry. This investment further ensures our ability to supply high-quality, safe and fairly-traded xanthan gum,” said E. Charles Bowman, VP-marketing, CP Kelco. “As the investigation unfolds and information becomes available, additional expansion plans will be considered.”