Increasing demand for natural astaxanthin products has led Israeli algae specialists Algatechnologies to more than double its production capacity, the firm has said.
Algatech said the expanded production capacity will make it the largest manufacturer of natural algal astaxanthin. The $20 million investment behind the growth is part of an ongoing investment and development program by new owners Grovepoint, a UK-based investment group.
Recent years have seen dramatic growth in awareness of the potential health benefits of astaxanthin, coupled with increasing demand for the ingredient from manufacturers in the health and wellness sector.
Grovepoint plan to continue the growth and development of the Algatech business to capitalise on soaring demands for natural astaxanthin and related products, said the firm.
Speaking to NutraIngredients Efrat Kat, director of marketing & salesfor Algatech said completion of this latest expansion has led the company to estimate that it is now the largest manufacturer of natural algae astaxanthin.
“This expansion of the production of astaxanthin from microalgae will allow Algatech to maintain its significant leadership position in existing markets as well as leverage it to develop new ones," explained Leon Blitz, leading director at Grovepoint
Hagai Stadler, CEO of Algatech added that the continuing expansion will be executed in phases - with a substantial part to be completed in 2014.
“Part of the new plant is dedicated specifically for production of new microalgae products, based on our expertise and capabilities in the microalgae cultivation process," he added. "Innovative technologies will be merged into the current process to increase the facility yield and to reduce costs."