Phyto-Source Expands Cholesterol Lowering Products Plant in Texas

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Phyto-Source LP, a 50-50 manufacturing joint venture of Forbes Medi-Tech (NASDAQ:FMTI) (Vancouver, British Columbia) and Chusei USA (Pasadena, Texas), is wrapping up an expansion (PEC 01009582) of their phytosterol manufacturing plant in Pasadena, Texas. The company needed the extra capacity in order to meet projected demand for their cholesterol-lowering products.

Phytosterols are lipid-like compounds extracted from plants used to produce cholesterol-lowering food ingredients or for use in pharmaceutical products. Phytosterol-enriched foods are part of a new category of food products known as functional foods - foods and beverages with an added ingredient that provides a medicinal benefit or helps prevent disease. These new hybrid "medicinal" foods are also known as nutraceuticals.

Opened in January of 2002, the 55,000 square foot Phyto-Source plant was built (PEC 01008283) at a cost of almost $20 million. Initial production capacity was approximately 500 metric tons of phytosterols per year with the plant ramping up to 1,000 metric tons by the end of 2002. Upon completion of the current $5 million expansion project, the plant's capacity will be increased to 1,500 metric tons per year. The project was primarily funded by revenue generated by the phytosterols joint venture, with additional financing provided by the Southwest Bank of Texas.

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