Algatechnologies Invests $20 Million in Natural Astaxanthin Production
Algatechnologies (“Algatech”), Israel, announces a more than 100% expansion of its production capacity of AstaPure® brand natural astaxanthin. This doubling of capacity follows an investment of $20 million in its state-of-the-art facility in the Arava Desert, Israel.
This significant step is only part of the transformation by Algatech’ new owners, Grovepoint, since the UK investment group acquired control of Algatech in 2013. Grovepoint’s distinct aim is development and capitalization of the potential business in natural astaxanthin and related products.
“The expansion will be executed in phases, with a substantial part to be completed in 2014,” says Hagai Stadler, CEO of Algatech. “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. Innovative technologies will be merged into the current process to increase the facility yield and to reduce costs“.
The past few years have witnessed dramatic growth in awareness of the health benefits of natural astaxanthin. This stems from the publication of a number of important clinical trials showing that regular consumption of astaxanthin helps protect the body from health disorders related to oxidative stress.
“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, “ adds Leon Blitz, Grovepoint leading director.
The AstaPure® brand is sold mainly in North America, Europe and Asia as an active ingredient in dietary supplements, cosmetics and functional foods and beverages.
“The expansion is symbol of trust on the future of the natural astaxanthin, and in it growth in the coming years” says Ed Hofland, Algatech Chairman.