Danish food ingredients firm Danisco has said it plans to make a large investment in the organic growth of its ingredients business by constructing a new pectin plant in Brazil.

The new plant, to be located in the centre of Brazil's largest citrus area in the state of Sao Paulo, will mainly use orange peel as a raw material and will enhance Danisco's production capacity for pectin by 35%.

Danisco said the construction of the plant is based on a need for more capacity, as its pectin plants in Mexico and the Czech Republic are already running to full capacity. The company plans to invest DKK300m (US$49.6m) in the plant, which should be operational in 2007.

"The market for soft drinks is moving towards new types of beverages, e.g. drinking yoghurts and milk/juice drinks. Pectin is very important for stabilising such beverages, and our new plant supports this trend," said Hans Henrik Hjorth, president of Danisco Textural Ingredients.