Jungbunzlauer ups citric acid, xanthum gum capacity

However while European production of the ingredient has increasedslightly to meet new demand, its overall market share has shrunkby nine per cent.

This is because European citric acid producers have been undersignificant price pressure recently as a result of cheaper materialentering the market from Chinese suppliers. However a complaintbrought by producers including Jungbunzlauer to European authorities resulted in the imposition of anti-dumpingtariffs against Chinese suppliers.

Although Jungbunglauer has not issued comment on the competitionauthorities' findings in its favour, the plan to increase capacitywould indicate an expectation that equilibrium will be restored.

In this context, Jungbunzlauer is in a relatively strong positionsince a number of other European producers have recently closedfacillities or bowed out of the market entirely. These includemajor players ADM and Tate & Lyle.

Xanthan gum

Jungbunzlauer says that xanthan gum is experiencing "robust growth" in all market segments - house and beauty care and oildrilling, aswell as food uses.

The hydrocolloid by used in the food sector as a thickener andstabiliser in products like sauces and dressings. It is said tohave "exceptional rheological behaviour produced by the bacterium Xanthomonas campestris ".