The company that supplies lycopene for food supplements and other products says the facility in Kent will more than double the capacity of its premix business, formerly known as Nutriblend.
The new plant, expected to be completed by the end of November, will also become the headquarters of LycoRed Europe, to be run by newly appointed Peter Gallagher.
"It has all of the latest blending technologies and much greater warehouse capacity, allowing us to make much larger blends and therefore offer cost advantages for our customers," Gallagher told NutraIngredients.com.
He added that the firm is also looking to develop new markets, such as infant formula, and grow the lycopene market in the UK and Europe.
Nutriblend already supplies leading food makers such as Nestle, Kellogg's and Cereal Partners but Gallagher says new capacity and synergies with other LycoRed businesses like encapsulation specialist Biodar will allow it to increase its market share.
Nutriblend founder David Robertson will become LycoRed's president.