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Frutarom to Invest $30 US Million in New R&D Center and Manufacturing Facility for Natural Taste and Health Products in Israel to Support Growth


News provided by

Frutarom Industries Ltd

16 Oct, 2012, 15:07 GMT

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HAIFA, Israel, October 16, 2012 /PRNewswire/ --

New plant to bring expansion of Frutarom's global R&D and production in the strategic fast growing field of natural products

Ori Yehudai, Frutarom's President and CEO:

"Building this center for R&D and innovation and a new manufacturing plant for natural taste and health products will strengthen Frutarom's capabilities and leadership in these increasing demand fields, and serve Frutarom's rapid growth strategy.     The new plant will bring additional synergies and efficiencies in our R&D processes and production globally".

Frutarom Industries Ltd., (LSE: FRUT, TASE: FRUT) one of the world's largest companies in Flavors and Fine Ingredients, is expanding its operations and building a center for R&D and innovation and a manufacturing plant for taste and health natural products in Israel, with an overall investment of approximately US$30 M.

The Company today reported that it has received approval from the Israeli Ministry of Industry and Trade's Investment Center, obtaining the status of an Approved Enterprise for the new plant, which will expand Frutarom's scope of R&D and production in Israel and throughout the world. The new plant will be awarded an investment grant and tax benefits under the Israeli Encouragement of Investments Law. The investment grant will be at a rate of at least 20% of Frutarom's investments in fixed assets. The plant will be located on a 16 acres site.

Frutarom is a global leader and expert in development, production and marketing of taste and health solutions to the food and beverage, nutritional supplements, cosmetics and pharmaceutical industries. The plant will allow Frutarom the use of the latest and most advanced technologies, will expand Frutarom's innovative products portfolio in the field of taste and health and will strengthen Frutarom's business and competitive position to support the increasing global demand. The new plant will produce innovative products developed in Frutarom's research and development labs throughout the world, allowing Frutarom to expand its production capacity and R&D infrastructure and to achieve additional operational efficiencies and optimizing the synergies between its global activities.

Ori Yehudai, Frutarom's President and CEO, commented: "I am pleased to announce our plan to build Frutarom's new plant and center for excellence in Israel. The plant will increase our production capacity and will serve as a springboard for strengthening Frutarom's leadership in taste and health solutions, supporting our rapid growth strategy, combining profitable organic growth with strategic acquisitions. We identified the trend of a shift towards natural products and health products well in advance, and have been able to integrate these intelligently into Frutarom's unique product portfolio. The building of the new plant, which will serve as a center for research and development and innovation in these growing areas, is one more step in our expansion of development of innovative, unique products addressing the most current consumer preferences."

"We will act to increase cooperative ventures between Frutarom, led by its planned R&D center and plant, and the advanced agriculture in Israel, with the vision of being closer to natural sources and unique raw materials."

"We recognize great opportunity in our target markets, and this important investment decision is the outcome of the continued customers demand for Frutarom's innovative and unique solutions in the field of taste and health and our continued confidence in our growth strategies. The new plant and the expansion of the Company's production capacity will allow us to deepen Frutarom advantages, its - global spread, innovation, standards of excellence with regard to quality and customer service, and to reinforce Frutarom's position as one of the world leaders in the area of taste and health".

About Frutarom  

Frutarom is a global company operating in the global flavor and fine ingredients markets. Frutarom has significant production and development centers in three continents and it markets over 30,000 products in five continents to over 14,000 customers in more than 130 countries. Frutarom's products are intended mainly for the food, beverage, flavor, fragrance, pharmaceutical, nutraceutical, health food, functional food, food additives and cosmetic industries.

Frutarom, which employs approximately 2,100 people worldwide, has 2 main activities:

  • The Flavors Segment, which develops, produces and markets flavor compounds and food systems.
  • The Fine Ingredients Segment, which develops, produces and markets natural flavor extracts, natural functional food ingredients, natural pharma/nutraceutical extracts, specialty essential oils, citrus products and aroma chemicals.

Frutarom's products are produced in its plants in the US, UK, Switzerland, Germany, Israel, China and Turkey. The Company's global marketing organization includes branches in Israel, the US, UK, Switzerland, Germany, Belgium, the Netherlands, Denmark, France, Hungary, Romania, Russia, Ukraine, Kazakhstan, Belarus, Turkey, Brazil, Mexico, Costa Rica, China, Japan, Hong Kong, India and Indonesia. The Company also works through local agents and distributors worldwide.

For further information, visit our website: http://www.frutarom.com.

Company Contact: Ori Yehudai, President & CEO Frutarom Ltd.
Tel: +972-9-9603800
Email: oyehudai@frutarom.com

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