Algatechnologies, which produces new strains of algae used in the pharmaceutical, food supplements, and cosmetic industries, will invest NIS 60 million in expanding its factory in the Arava area of the Negev. Algatechnologies is located in Kibbutz Ketura.
Grovepoint, a UK investment group, acquired Algatechnologies 18 months ago at a company value of $50 million. The company was founded on the basis of technology developed by Prof. Sammy Boussiba at the Microalgal Biotechnology Laboratory at Ben Gurion University of the Negev. The company's leading product is astaxanthin, a recognized antioxidant marketed as both a food supplement and a component in cosmetic preparations. Antioxidants, which were discovered in clinical studies, can be used to prevent damage to various types of cells, including skin cells and brain cells.
Algatechnologies markets its product to companies that use it in their products, not directly to consumers. Its sales are estimated in the tens of millions of dollars.
Algatechnologies CEO and Grovepoint Israel manager Hagai Stadler says, "The expansion is part of the company's strategy of establishing its international dominance." He adds, "The microalgae industry is still in its infancy. Only a small proportion of types of algae has been researched, and is being grown industrially. Based on the unique knowledge accumulated by the company, the new factory will produce new microalgae and produce new unique materials."
Published by Globes [online], Israel business news - www.globes-online.com - on September 16, 2014
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