FMC to set up microcrystalline cellulose facility in Thailand

US-based chemical firm FMC plans to invest $100m to set up a new facility at Rayong, Thailand, which will manufacture microcrystalline cellulose (MCC) – a refined wood pulp that is used as a texturiser, an anti-caking agent, and fat replacer in food production.

The new plant will enable the company to ensure the long-term supply of its Avicel branded colloidal MCC, which is used as a key ingredient in food and beverages, to the growing Asian market.

FMC president, CEO and chairman Pierre Brondeau said the new investment is in line with the company’s Vision 2015 growth strategy. The strategy aims to expand global reach and generate sales of $5bn and earnings before interest and taxes (EBIT) in the range of $1.2bn.

The facility, which is expected to begin production in the fourth quarter of 2014, will boost the company’s global food-grade MCC capacity by 35%.

While the facility will initially produce Avicel colloidal MCC, its design will facilitate further capacity expansion and the manufacture of various product lines for use in both food and pharmaceutical markets.

FMC Specialty Chemicals president Michael Wilson said that the demand for MCC is continuing to grow rapidly in Asia.

"This addition of significant new capacity to our MCC network will be needed to supply high-quality products and service to our Asian customers, while at the same time providing us with greater flexibility to support global growth with our existing capacity in North America and Europe," Wilson added.

FMC BioPolymer, a business division of FMC, currently produces food and pharmaceutical grade MCC at manufacturing facilities in Cork, Ireland, and in Newark and Delaware, US.

FMC, which caters to the agricultural, industrial, environmental and consumer markets, has been seeking to expand its presence in Asia; in March 2012 it opened a technical centre in Singapore to serve the technology and formulation needs of food and beverage consumers in South-East Asia.

The company reported annual sales of approximately $3.4bn in 2011.