Citric acid factory shutsThis article was originally published in Foodnews
TATE and Lyle is closing its citric acid plant in Selby, UK. The company will continue to serve customers from operations in the US, Brazil and Colombia. Citric acid is an acidulant and preservative widely used in soft drinks, made by fermentation of sugar solutions and extractions from lemon juice, lime juice and pineapple canning residue. Tate and Lyle says Chinese imports have had a huge impact on the world market, being significantly cheaper, due to the large quantities available and lower labour costs. Under pressure from retailers, buyers are increasingly using the cheapest supplies in order to cut raw material costs, pushing European competitors out of the market.