CP Kelco announced plans to expand its San Diego facility capacity by roughly 40% in order to increase the availability of domestically produced xanthan gum. The expansion will extend CP Kelco’s ability to meet growing customer demand for xanthan gum following a recent determination by the U.S. 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 of the San Diego facility.
In January 2013, the U.S. Department 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. The action followed U.S. 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 U.S. market.
“CP Kelco is committed to supplying xanthan gum to support the U.S. industry. This investment further ensures our ability to supply high-quality, safe and fairly-traded xanthan gum," said E. Charles Bowman, vice president of marketing for CP Kelco. “As the investigation unfolds and information becomes available, additional expansion plans will be considered."
