Tate & Lyle PLC and IGENE Biotechnology, Inc (Igene) today announced a 50:50 joint venture to produce AstaXin®, a natural source of the pigment astaxanthin, which is widely used in the aquaculture industry.
Astaxanthin is a naturally occurring nutrient that is essential to impart the characteristic red colour to farmed fish. Most available astaxanthin is produced via a chemical route, but AstaXin® is a natural product produced by the fermentation of carbohydrates. AstaXin® contains 8000 parts per million of astaxanthin and has been approved as a feed ingredient in Chile, Canada, the United States, and Japan. The process to obtain approval in Europe is underway.
AstaXin® will be produced utilising Tate & Lyle’s world-leading fermentation capability together with unique technology developed by Igene. Part of Tate & Lyle’s existing Selby citric acid facility will be modified to include the production of 1,500 tonnes per annum of this new product. Tate & Lyle’s investment of £15m ($25m) includes certain of its Selby assets currently used in citric acid production. Commercial production is expected to commence in the calendar year 2004.
"This move is in line with our strategy to grow Tate & Lyle’s range of valued added carbohydrate-based ingredients and to build on our world-leading fermentation capability," Simon Gifford, Tate & Lyle Acting Chief Executive said. " The market for this product is enjoying exciting growth. Customers, who are mainly involved in the production of farm-raised fish such as salmon and trout, are seeking alternatives to the synthetic products currently available. All major producers have approved the use of AstaXin®."
"We have been improving our strain and process continually over the past number of years. This is the ideal moment to exploit this technology with the assistance of Tate & Lyle's experienced manufacturing staff," said Michael Kimelman, Chairman of Igene.
For more information contact:
IGENE Biotechnology, INC. Christine Fitch, USA. 410-997-2599
About Tate & Lyle
Tate & Lyle is a world leader in carbohydrate ingredients. Our core competence is to take basic carbohydrates - corn, wheat or sugar - and add value to these raw materials through technology. As a result of continuous innovation we offer an ever-wider product portfolio of versatile and functional ingredients. These products include Cereal Sweeteners, Starches, Sugars and Citric Acid. Our products have wide applications in the food, beverage, pharmaceutical, cosmetic, paper, packaging and building industries.
With headquarters in London, the Group has 8,500 employees and 50 plants in 24 countries. Sales in the 53 weeks to 31 March 2002 totalled £3.9 billion.
Tate & Lyle ordinary shares trade on the London Stock Exchange under TATE.L. In the US, ADRs trade on the NASD OTC Bulletin Board under TATYY (each ADR is equal to four ordinary shares). Additional information can be found on this website.
About IGENE Biotechnology
Igene has been specialising in research to adapt naturally found chemicals to productive applications. It is headquartered in Columbia, Maryland. Its shares trade on the NASD OTC Bulletin Board under IGNE.
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About Tate & Lyle PLC:
Supported by our 165-year history of ingredient innovation, we partner with customers to provide consumers with healthier and tastier choices when they eat and drink. We are proud that millions of people around the world consume products containing our ingredients and solutions every day.
Through our leading expertise in sweetening, mouthfeel and fortification, we develop ingredients and solutions which reduce sugar, calories and fat, add fibre and protein, and provide texture and stability to food and drink in categories including beverages, dairy, bakery, snacks, soups, sauces, and dressings.
Tate & Lyle recently acquired CP Kelco, a leading provider of pectin, speciality gums and other nature-based ingredients to create a leader in mouthfeel, significantly enhancing our solutions capabilities. Following this combination, we now have more than 5,000 employees working in around 75 locations in 39 countries, serving customers in more than 120 countries. Science, Solutions, Society is our brand promise and how we will achieve our purpose of Transforming Lives through the Science of Food. By living our purpose, we believe we can successfully grow our business and have a positive impact on society. We live our purpose in three ways, by supporting healthy living, building thriving communities and caring for our planet.
Tate & Lyle is listed on the London Stock Exchange under the symbol TATE.L. American Depositary Receipts trade under TATYY. For the year ended 31 March 2024, and on a pro forma basis which assumes for illustrative purposes that the combination with CP Kelco took place on 1 April 2023, revenue for the enlarged Tate & Lyle Group would have been £2.25 billion. For more information, please visit www.tateandlyle.com or follow Tate & Lyle on LinkedIn, X (Twitter), Facebook or YouTube
