News | January 16, 2008

Danisco Secures Raw Material Supply For Xylitol With Major Plant Expansion In Europe

Elmsford, NY - Ross Craig, Regional Sweeteners Director, Danisco USA Inc., confirmed the completion of an expansion to the largest xylose factory in the world. The factory, Danisco Sweeteners GmbH, located in Lenzing, Austria, is the latest Danisco investment to come on stream to secure and increase the production of xylose, the raw material for xylitol production.

Danisco is the world's leading supplier of xylitol, the cariostatic bulk sweetener recognized world-wide for its unique dental benefits. According to Mr. Craig, "Xylitol has seen remarkable growth since its commercialization in the early 1970s, particularly due to its inclusion as a unique ingredient in sugar free chewing gum. Its cool, refreshing taste and clinically documented dental benefits have made xylitol an extremely successful commercial sweetener".

The xylose plant expansion was designed and initiated at the beginning of 2006 at a cost of $34 million. The manufacturing process is based on Danisco's highly efficient, proprietary and patented technology that produces xylose from hardwood sources at the most competitive cost. Its efficiency is enhanced by close cooperation with Lenzing AG, the world leader in cellulose fiber technology. Nicholas Dunning, EVP of Danisco's Sweeteners and Pharma unit, commented that "This integration is an excellent example of Danisco's ongoing commitment to increased sustainability and the utilization of renewable, natural resources. Our strategy is to develop the xylitol business globally and the expansion at Lenzing is an important piece in our plan."

Xylitol is approved for food use in over 50 countries and this fact, combined with increasing commercial and scientific interest in the ingredient around the world, has led to a strong demand for xylitol in the global market. The completion of the plant expansion in Austria will considerably increase Danisco's capacity to supply the raw material for xylitol production, ensuring that Danisco will continue to remain the world's leading manufacturer of xylitol.

SOURCE: Danisco USA Inc.