Tate & Lyle to distribute BBCA citric acid products

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Tate & Lyle PLC and BBCA Biochemical of China announce the signing on 17 July of an agreement for Tate & Lyle to distribute BBCA citric acid products outside China. This agreement is a first step towards a broader global alliance and will be submitted to the EU Authorities for approval. Under the agreement, Tate & Lyle will purchase BBCA products, which it will distribute under a joint brand. Input from the Tate & Lyle technical team will ensure product quality matches Tate & Lyle’s world-leading standards. This agreement extends Tate & Lyle’s citric acid range and offers customers global access to a comprehensive portfolio of quality products. Similar arrangements for products other than citric acid are currently under discussion as are arrangements for BBCA to handle the import into China of complementary Tate & Lyle products. A joint venture to construct a new corn wet mill in Bengbu, China is also under negotiation. Within this agreement, which is expected to be signed in autumn 2002, Tate & Lyle will contribute technology, manufacturing expertise and up to US$10 million cash in return for a 25% equity stake in this plant. The joint venture is one of three such enterprises planned by the Chinese Government and will provide the raw material for the production of ethanol, reducing reliance on imported oil. A range of other fermentation products may also be produced to service growing Chinese demand and exports. Larry Pillard Chief Executive Tate & Lyle PLC: "I welcome this agreement, which brings together two complementary organisations and provides the opportunity for each to grow within a low-cost environment. Tate & Lyle brings a portfolio of technology, manufacturing excellence, quality brands and a global reach. BBCA has low-cost carbohydrate processing capabilities in Asia that complement our strengths in the Americas and Europe. We view this agreement as a positive move towards improving the return from our citric acid division." Roger Li Chairman, BBCA Group: "We are pleased to take the first steps in a relationship that offers the opportunity to enhance BBCA’s access to global markets – first for citric acid and later for other products. In addition, co-operation with Tate & Lyle will accelerate our ability to meet China’s internal need to substitute petrochemical-based products with those based on renewable carbohydrate sources."
About the Alliance BBCA has low-cost carbohydrate processing capabilities in Asia that complement Tate & Lyle's strengths in the Americas and Europe. Tate & Lyle offers manufacturing expertise based on technological leadership, together with the global marketing reach of its brand. The distribution agreement gives Tate & Lyle access to Citric Monohydrate, and completes its offering of Citric Acid products. Tate & Lyle will therefore be able to offer its Customers global access to a comprehensive portfolio of quality citric acid products. The joint venture corn wet mill will add new ethanol capacity that will enjoy significant support from the Chinese Government because it will use China’s substantial grain surpluses to replace petroleum, which is currently predominately met by imports. The proposed joint venture is one of a total of three such enterprises planned by China and will be allocated a specific geographic area in which to distribute its products. About BBCA BBCA Group consists of more than 30 holding companies, wholly-owned companies and joint ventures in China, three overseas companies, one biochemical R&D centre as well as one pharmaceutical R&D centre, among which Anhui BBCA Biochemical CO. Ltd. and Anhui Xinli Pharmaceutical CO. Ltd. are quoted companies. BBCA produces starch, citric acid, sweeteners and vitamin products from cereal grains and is further developing biochemical and pharmaceutical products including organic acids, amino acids, polymers and fuel ethanol. The company has a programme to improve its environmental performance and minimize the impact on the environment. During the past years, it has invested significant capital to make improvements in performance, including upgrading of an effluent treatment plant. BBCA is ISO9002, ISO14001, OU Kosher and Halal certified. About Tate & Lyle Tate & Lyle is a world leader in carbohydrate ingredients. Its core competence is to take basic carbohydrates from corn, wheat or sugar and add value to these raw materials through technology. As a result of continuous innovation the Group offers an ever-wider portfolio of versatile and functional ingredients. These products include cereal sweeteners, starches, sugars and citric acid. Tate & Lyle products have wide applications in the food, beverage, pharmaceutical, cosmetic, paper, packaging and building industries.

About Tate & Lyle: 
Tate & Lyle is a global provider of solutions and ingredients for food, beverage and industrial markets.

Tate & Lyle operates through two global divisions, Food & Beverage Solutions and Primary Products, supported by the Innovation and Commercial Development and Global Operations teams. Food & Beverage Solutions is focused on growth by building leading positions globally in the categories of beverages, dairy, and soups, sauces and dressings. Primary Products is focused on delivering steady earnings and generating cash.

Food & Beverage Solutions consists of: Texturants, including speciality starches; Sweeteners, including low- and no-calorie sweeteners; and a Health and Wellness portfolio comprising mainly speciality fibres; and Stabilisers and Functional Systems, which are bespoke ingredient blends that ensure foods retain their structure.

Primary Products consists of high-volume sweeteners, industrial starches and fermentation products (primarily acidulants).  It also sells co-products from the corn milling process as animal nutrition.

Tate & Lyle is listed on the London Stock Exchange under the symbol TATE.L. American Depositary Receipts trade under TATYY. In the year to 31 March 2020, Tate & Lyle sales totalled £2.9 billion. For more information, please visit http://www.tateandlyle.com or follow Tate & Lyle on Twitter or Linkedin.