UK sugar and sweetener company Tate & Lyle has announced that it plans to build a new £97m (US$179.2m) sucralose manufacturing plant in Singapore.
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The construction of Tate & Lyle’s second sucralose facility is in response to strong and sustained international customer demand for Splenda sucralose.
The new plant, which adds to the company’s existing operation in McIntosh, Alabama, USA, will be completed by January 2007, the company said. Once fully operational, the Singapore plant will have a capacity two-thirds of that at the expanded Alabama facility.
“The new plant will broaden our manufacturing base and help facilitate improved access to the Asian and European markets. Sucralose has enjoyed success in Japan since the first products were launched there in 1999 and we aim to replicate this success across the region. European Union approval of sucralose was granted in February 2004 and becomes final in all member states in February 2005,” said Ian Ferguson, chief executive of Tate & Lyle.
Separately, the company reported profit before tax, amortisation and exceptional items of £130m for the six months ended 30 September 2004, up 9.2% as reported and up 16.0% at constant exchange rates.
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By GlobalData“We have made an excellent start to the financial year. With the exception of Amylum, trading in all major businesses is ahead of the corresponding period. Whilst results at Amylum are lower they have exceeded our expectations as cereal prices in Europe returned to levels similar to those before last year’s dramatic increase. The realignment of our sucralose business, and the exciting growth experienced subsequently, has improved total profitability,” Tate & Lyle said.
The company added that despite higher energy costs and other factors it expects the results of the group for the year as a whole to reflect satisfactory progress.
