CP Kelco Announces Biogum and Pectin Price Increases Effective January 1, 2002
Wilmington, DE, October 16, 2001 - CP Kelco announced today that it plans
to increase the price of its biogum and pectin products effective January 1, 2002. This
will be the first CP Kelco hydrocolloid price increase in over three years.
BIOGUMSThrough its technology improvement programs, CP Kelco has been successful in absorbing
many rising costs associated with the production of fermentation products. However,
like most of its customers, CP Kelco faces escalating costs for both energy and
raw materials.
CP Kelco has extensive fermentation capacity at its four biogum
manufacturing sites located in North America and the United Kingdom, giving
it the capability and flexibility to supply all foreseeable market needs.
The company is the only manufacturer that supplies significant volume to each of
the three primary xanthan gum markets – food, industrial and oil field.
PECTIN
Demand for pectin has grown consistently over the last three years, leading CP
Kelco to invest in expanding and improving manufacturing capabilities in its three
production facilities in Europe and South America to meet the demands of the market.
During the same period, raw material for the production of pectin (citrus peel) has
risen steadily.
CP Kelco ApS was formed in 2000 by the combination of the Copenhagen Pectin/ Food
Gums Division of Hercules Incorporated and the Kelco Biopolymers business of Monsanto
Company. CP Kelco is the global leader in the hydrocolloids (thickeners and stabilizers)
market, with leading positions in xanthan gum and pectin and a strong position in c
arrageenan. The company has more than 2,000 customers in over 100 countries,
with headquarters in Delaware, and facilities in North America, Europe, Asia and Latin
America. CP Kelco’s principal share-holders are Lehman Brothers Merchant Banking
Partners II L.P. and Hercules Incorporated (NYSE: HPC).
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Contact: Russell Spiess
(713) 895-7575
russell.spiess@cpkelco.com
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