Frutarom to Invest $30 US Million in New R&D Center to Support Growth in Israel
The Company 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.
17 Oct 2012 --- Frutarom Industries Ltd., 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 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".
