Algatechnologies increases capacity for astaxanthin

Algatechnologies has invested $20 million in a facility in Arava Desert, Israel, allowing increased production capacity of more than 100%. It said the investment is part of the transformation being implemented by its new owners Grovepoint. This UK investment group purchased Algatech last year, and is interested in generating the business of natural astaxanthin and related products.

According to Hagai Stadler, CEO, Algatech, a portion of the new facility in Arava Desert will be dedicated to the production of new microalgae products, for which the company has the expertise and capability. “Innovative technologies will be merged into the current process to increase the facility yield and to reduce costs,” he said.  

Leon Blitz, Grovepoint leading director said, “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."

“The expansion is symbol of trust on the future of the natural astaxanthin, and in it growth in the coming years” said Algatech chairman Ed Hofland. 

Astaxanthin is an active ingredient in dietary supplements, cosmetics and functional foods and beverages. The release of clinical studies showing its benefits, particularly in protecting the body from disorders related to oxidative stress, has increased awareness on this product.

Algatech is a member of the Natural Algae Astaxanthin Association (NAXA), which educates the public and the industry on the benefits of the product. Its AstaPure? brand is sold in North America, Europe and Asia. 

See the company at Vitafoods on 6-8 May in Palexpo, Geneva, at booth # 21032.