Within the framework of an expansion strategy for the Latin American region, Alltech has started construction on an algae production plant on the same premises as Alltech Sao Pedro, the largest yeast plant for animal nutrition in the world.
This new $63 million investment in Brazil will generate more than 200 direct and indirect jobs, and it will increase Alltech's Latin America production by 58%, according to the announcement.
"The company's experience with its first algae manufacturing plant in Kentucky has been a great success, and this is the reason for making the investment in Brazil," said Dr. Mark Lyons, Alltech vice president for corporate affairs.
"In view of the growing world population, we are certain that algae will play a key role in animal and human nutrition," said Guilherme Minozzo, Alltech vice president for Latin America.
Alltech also announced the expansion of its production capacity through the acquisition of a new 7,300 sq. m plant in Indaiatuba, Brazil. In the new facility, the company will specially manufacture nutritional solutions for beef and dairy cattle, in response to the increasing regional demand and to support the production capacity of the nine plants that Alltech currently has throughout Latin America, particularly Alltech's plant in Araucaria, Brazil.
With this new acquisition, the company is planning to close 2014 with a sales growth of around 27% in Latin America.