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Danish to acquire Northants company |
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Written by News Desk
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Wednesday, 23 January 2008 |
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The future of Northampton emulsifier specialist, Abitec Ltd, lies wide open following an agreement for its acquisition by Danish ingredients company, Danisco.
Abitec employs 55 people and generates revenues of around £20 million from at its production plant, which sits less than 10 miles from Danisco’s existing UK operation in Wellingborough.
“Nothing has been decided on the future of Northampton and we will not rule anything out,” said Martin Klavs Nielsen, head of Danisco’s Emulsifiers business. “The site is focused on emulsifiers, which we also do at five other sites, Denmark, US, Brazil, Malaysia and China.
“We will need to look at it after the acquisition is approved. It may stay on its own in the UK or it may be integrated elsewhere, but we need completion of the deal and access to the people first.”
Abitec is currently part of the Ingredients division of Associated British Foods plc and supplies emulsifiers – used to stabilise processed foods – and medium-chain triglycerides (MCT). Emulsifiers based on natural raw materials can be used by food producers to counter increasing raw material costs. Its acquisition is conditional upon the approval of the appropriate competition authorities and is in accordance with Danisco’s strategic target of boosting growth in the core Ingredients business. Upon completion it will be integrated into Danisco’s Emulsifiers business unit.
“Abitec are in some areas that we could benefit from. We have very good R & D and while Abitec is not focused on R & D, it has a very good customer base,” said Nielsen.
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