Cargill will invest €20 million ($22.5 million) in its starch production facility in Sas Van Gent, the Netherlands, to expand the production of instant starch at the site.
The investment will fund the construction of a new building and the installation of two new roll dryers at the site, ensuring high food-safety standards and product quality. The new equipment is expected to begin operations in the summer of 2019.
Instant starch is a key ingredient used in a variety of cold prepared foods, and Cargill says that the expansion will help it support the increased consumer desire for convenience food, as the demand for the categories in which instant starch is used has increased.
According to figures from research firm Euromonitor, retail volumes for ready meals, sauces, soups, cakes and pastries combined grew by 11% from 2013 to 2018, well above the 7% growth of overall packaged food in the same period.
Denis Palacioglu, starch product line manager, Cargill in Europe, said: “Consumers have had to adapt their eating habits to their busier lifestyles, which has led to an increased demand for convenience food.
“This investment in the plant allows Cargill to deliver on the current consumer demand, and to prepare for even greater customer needs in the future”.
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