Algae.Tec’s nutraceutical plant “ahead of schedule”
September 30, 2016
lgae.Tec has announced that, with the completion of the US$1M injection by Gencore, their nutraceutical plant upgrade in Cummings, Georgia, is progressing ahead of schedule. As a result it is now expected that initial sales will be made to Gencore within weeks, with full production being achieved within 3 months.
The goals of the upgrade project primarily target improvements in the plant’s production efficiency, enhancements in product quality, and upgrades in the plant’s flexibility to produce multiple nutraceutical products and will continue the development of the Company’s core technology.
At full production, and under the Gencore agreement, it is anticipated this first plant will generate revenue of approximately US$2.5M per annum. The current small-scale plant is designed to produce up to 50 tons of algae per year, dependent upon the type of algae produced.
“Gencor, having recently signed a supply agreement and invested in the expansion program, and followed up with two rounds of visits including the Sales and Marketing team and Product development chief to Cumming, gave the team great confidence and expressed satisfaction with the progress made and feel confident to progress further their marketing and sales efforts to sell both traditional and new algae products by Algae.Tec,” said Peter Hatfull, Algae.Tec’s Managing Director.
The Company is now in discussion with other strategic partners in relation to the structure and financing of a larger nutraceutical plant capable of significantly greater volumes.