Purac, the world’s largest producer of natural lactic acid and lactates, has strengthened its position in the rapidly growing Asian market with the announcement of its first lactic acid facility – to be constructed in Asia Industrial Estate in Rayong province, Thailand.
Gilles van Nieuwenhuyzen, CEO of the Purac division of CSM N.V. said: “Thailand is strategically located in the middle of the region, making it a significant gateway to ASEAN and other Asian countries. Besides, it provides a lot of competitive advantages to investors, including its abundance of cost-effective raw materials, the proximity of other chemicals and sufficient energy supply, the efficient logistical infrastructure, the availability of a skilled labour force as well as the Government’s incentive programmes. Our plant is located near Laem Chabang, one of Thailand’s main seaports, for ease of export to the Asian region and worldwide.”
He added that the new manufacturing plant is crucial to the company’s growth strategy: “We have to increase production to meet the growing global demand for lactic acid and lactic acid derivatives which expands at approximately 10% per annum. The production plant will enable us to deliver goods faster to our customers, most of whom are leading food and consumer product manufacturers. We are confident the investment will enhance our cost effectiveness and supply chain management efficiency while providing consumers with better products even faster.”
The manufacturing plant, equipped with latest technology and provision for further expansion, requires an investment of Bt 6 billion, which includes the lactic acid plant and other facilities such as a sodium/potassium lactates plant, offices, warehouses, and utilities. The new plant has a capacity of 100,000 tons undiluted lactic acid. The sodium/potassium lactate facility is designed with a capacity of 15,000 tons. The plant is set to be operational by the end of 2007.
Purac products are used in thousands of consumer and industrial products and processes. The most important applications of lactic acid and lactic acid derivatives, required in almost every segment of the food industry, are for improved functions of food, including longer shelf life, mineral enrichment, pH regulation and enhanced taste profiles. Non-food applications of the company’s products are required in the cosmetics, detergents, concrete, agro chemicals, coatings, metal and micro-electronics industries.
Purac products are manufactured via the fermentation of sugars and starches. These raw materials are renewable sources, attesting that all products from the company’s plants are biodegradable and sustainable.
“We hope our investment in Thailand will contribute largely to the country’s healthier farm sector and economy because most of our raw materials are produced and supplied by local farmers. At the same time, our product exports will generate higher income to the country. Purac is proud to play a part in helping Thailand realise its goal of being a growing economy,” said Gilles van Nieuwenhuyzen.
