SPLENDA TURNS AWAY CUSTOMERS

LONDON-Demand for Splenda continues to outstrip supplies, according to Splenda manufacturer Tate & Lyle. The company is not taking on new U.S. customers, said Ferne Hudson, spokeswoman for Tate & Lyle.

Tate & Lyle took over a sucralose manufacturing plant in Mclntosh, Ala., from McNeil Nutritionals-Splenda's U.S.-based marketer and distributor-in April 2004.

Several projects have already been completed and the plant is performing extremely well, said Hudson. "However, the demand for sucralose has far exceeded all our expectations, with sucralose proving extremely popular with both manufacturers and their consumers," she said.

Production and demand volumes are now aligned, and Tate & Lyle has decided to prioritize existing customer requirements.

"We will not be taking on new customers in the USA until the plant expansions come on line," Hudson said. "We will work with our current customer base in order to manage their sucralose requirements going forward."

Since taking over the plant last April, Tate & Lyle has announced a total investment of $75 million to expand the facility. Expansions will be completed in early 2006, with plant output more than doubling by then. More recently, Tate & LyIe announced investments of $175 million in a second sucralose manufacturing facility, to be constructed in Singapore.

Copyright United Publications, Inc. Apr 2005
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