DENMARK – Cargill, in a joint venture with AKV Langholt AmbA, has invested US$22.5 million in a new potato starch production unit at Langholt facility in Denmark.
According to the company, the operation of the facility will produce starches that will add to Cargill’s SimPure portfolio as the company anticipates the global pre-gelatinized starch industry to grow in the near future.
Investment in product development will allow Cargill to satisfy its customers by addressing their changes and preferences.
The new venture, which comprises of wheat flour, potato starch, and corn starch, is set to face competition with major players such as Tate & Lyle and Visco Starch who are all eying upcoming local segments and regional markets.
“This investment demonstrates Cargill’s commitment to providing our food manufacturing customers the functional native starches they need to meet the demand of today’s label-conscious consumers,” said Simon Waters, global food starch leader, Cargill.
The company is currently exploring acquisitions, joint ventures and new investments in facilities as it strives to realize profit through combined effort from its team of expertise and technological advancements.
The company also recently announced its intention to switch the German corn manufacturing plant to wheat processing to meet the growing demand for animal-based protein.
This was a move to diversify its product range owing to a shift in changing concerns by consumers, who are now opting for what they refer to as healthier diet choices.
Upcoming technological advancements in the market have prompted the company to invest in more diversified starch products that will provide customers with a pool to choose from.
“Consumer demand for products made with familiar, trusted ingredients is increasing rapidly,” added Waters.
“However, these ingredients must also stand up to the diverse processing conditions of modern processing. We understand these competing needs and are using state-of-the-art processing techniques making label-friendly starch solutions a reality.”