The two ingredients suppliers have already worked together through joint ventures selling grain alcohols to the spirit and liquor industry in Italy and France.
Production facilities are in place in Nesle, France, and Saluzzo, Italy and last year the company extended its capacity at the Saluzzo site to meet growing demand.
Growth in the market for high quality grain alcohols is again the reason for the latest investment in the UK market, said Philippe Pelzer, spokesperson for French co-op Tereos, which owns Syral.
Conversion
Syral and Frandino-owned ETEA plan to convert the Tate & Lyle citric acid plant in Selby in the UK for the production of grain alcohols. The two companies will operate under the joint venture Sedalcol UK.
They will initially focus on grain alcohols for the UK spirits and liquor market but may venture into other areas when market conditions permit.
Pelzer said any extensions to the plant will fall under the scope of what Syral already specializes in – namely starch-based ingredients, sweeteners, vegetable proteins and alcohol.
Site closure
At the end of September 2009, Syral closed its Greenwich plant in London that had been producing starch and glucose ingredients.
Pelzer said there were two main reasons for the decision to close the plant. Firstly, its location in the heart of London posed logistical problems, and secondly, with six European plants, Syral felt it had too much capacity in front of the market for starches and glucose.