@2010Tate and Lyle to review capital investment plans- Case StudyTate and Lyle is a multinational company majoring on food manufacturing and located in UK. The company is a major manufacturer of refined sugar, food ingredients, starches, and animal feed and operates worldwide. The company was established in 1921 after the joining of two competitive sugar refiners, Henry & Sons and Abraham Lyle & Sons and it is listed on the London Stock exchange under the symbol TATA. Currently, the company operates internationally with operations mainly in Europe, Asia and America. It supplies ingredients solutions and services to food, beverage and industrial clients (Anthony, 1978).
Tate & Lyle runs with the aim of becoming the world’s leading renewable ingredients business and with the dream of growing joining businesses and partnerships in developing the worlds leading ingredient business and developing a reliable global portfolio of typical, cost-effective, high value solutions in products and services for their clients (Gleeson 2010). Tate & Lyle is a sugar, food and industrial ingredients company. Tate & Lyle is a world-leading renewable food and industrial ingredients company, supplying an international market from more than 45 production facilities throughout the Americas, Europe and South East Asia.
It’s competent, large-scale manufacturing plants manufacture farm products, corn and cane sugar, into important ingredients for its clients. These ingredients affix taste, texture, nutrition and augmented functionality to products that millions of people all over the world use or consume daily. Tate & Lyle's variety of leading renowned food ingredients consist of Sucralose, Dietary Fiber, Polydextrose, Tate & Lyle Fairtrade Sugar and Lyle's Golden Syrup. Tate & Lyle also manufactures renowned industrial ingredients which include Bio-PDO, Ethylex and paper starches; and staple ingredients like high fructose corn syrup, sugar, ethanol, citric acid and vital starches.
Besides offering a variety of ingredients Tate & Lyle professional sales and product applications teams hold up clients by offering technical advice and proprietary customer imminent studies (Stittle 2008). Tate & Lyle, Share price (Gleeson 2010)Tate & Lyle manufactures an approximated 4 million tones of cereal sweeteners and refines more than 2 million tones of sugar annually into about 35 countries. It is the number one globally in industrial starches and wheat proteins and the only producer of sucralose sugar substitute, Splenda. Day Chart (19-Jan-2010)(Pearsall 2009)Case StudyThe sucralose plant in McIntosh, Alabama is one of two that Tate & Lyle which were in operation.
However, the firm decided that a breakthrough in the manufacturing procedure means it can now tackle all of its production requirements from just one production plant and consequently picked the newer plant in Singapore and decided to mothball the older firm located at Alabama. The new development produces 25 per cent more produce than the old one and Tate & Lyle claims that this stands for only half the potential benefit (Willmott 2008). Tate and Lyle recently mothballed its facility at McIntosh, Wisconsin and consequently it is producing all its sucrose form the new firm located at Singapore.
The Singapore plant started its operations in 2007 and makes use of the fourth generation manufacturing technology. The site will remain shut for unspecified time but the company is not planning to lay off the employees of the mothballed plant. Tale & Lyle has made reassurance to its clients that they will not be affected since the new plant which will be operating singly has sufficient capacity to meet the present demand of its products and thus the Singapore plant is in a position to maintain the required stock level singly (U. S.
News & World Report 2009). The mothballed factory at Alabama was itself a receiver of investment in 2004 when the plant was expended to meet the increasing demand of its product, namely, the high intensity sweetener sucrose. The mothballed firm had established a solid sucrose market allover (Gleeson 2010).