With reference to stock exchange notice from Hofseth BioCare October 29 2012 and to Q3 2012 report, regarding implementation of measures to improve the production-process for soluble protein (SPH) at the Midsund plant.
In 2012 Hofseth BioCare faced significant challenges in reaching satisfactory yield in its production of SPH. The company also had problems separating calcium from non-soluble proteins (PHP), forcing the company to sell a blend of the two as low grade animal-feed.
Planned actions are now implemented, including replacement of critical processing-components in the production-line, and the first full-scale production series with the new equipment are completed. Initial results are promising, indicating potential of a doubling of the SPH-yield. Soluble protein is Hofseth BioCares most important product and yield-improvements represents significant potential for the company.
Further, activity at HBC's newly acquired spray dryer facility at Berkåk is now initiated. The facility gives HBC control of the critical drying-phase of the SPH production-process, and going forward all drying processes related to SPH-production will be handled at Berkåk. Since the take-over in January, several batches of SPH have been handled, and the results show a significant quality improvement to the SPH products.
Soluble protein products have significant potential in the North American market, and in June 2012, Hofseth BioCare entered a distribution-agreement with US-based Roxlor for the application of the SPH-products in sports- and energy-drinks.
I addition to improved SPH-yield , the changes to the production may also make HBC able to separate calcium and PHP, which can open for sale and distribution of calcium products to the more profitable human nutrition market. Separated PHP will remain a feed market product.
Investments related to the re-adjustments are characterized as moderate.
For more information please contact:
Sjur Jenssen, CEO Hofseth BioCare ASA
Tel: +47 9155 3514
Email: sj@h-bc.no
About Hofseth BioCare:
Hofseth BioCare is a Norwegian biomarine company with the key objective to provide high value added biomarine ingredients for human applications. The Company is founded on the core value of sustainability and optimal use of natural resources. Through innovative production technology and logistics, Hofseth BioCare is able to preserve the quality of protein, calcium and oil extracted from fish off-cuts. Products that previously could only be used as animal feed can now be made suitable for human consumption. HBCs objective is thus to contribute to efficient use of marine resources and entering the higher profit market of quality ingredients for human applications.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
In 2012 Hofseth BioCare faced significant challenges in reaching satisfactory yield in its production of SPH. The company also had problems separating calcium from non-soluble proteins (PHP), forcing the company to sell a blend of the two as low grade animal-feed.
Planned actions are now implemented, including replacement of critical processing-components in the production-line, and the first full-scale production series with the new equipment are completed. Initial results are promising, indicating potential of a doubling of the SPH-yield. Soluble protein is Hofseth BioCares most important product and yield-improvements represents significant potential for the company.
Further, activity at HBC's newly acquired spray dryer facility at Berkåk is now initiated. The facility gives HBC control of the critical drying-phase of the SPH production-process, and going forward all drying processes related to SPH-production will be handled at Berkåk. Since the take-over in January, several batches of SPH have been handled, and the results show a significant quality improvement to the SPH products.
Soluble protein products have significant potential in the North American market, and in June 2012, Hofseth BioCare entered a distribution-agreement with US-based Roxlor for the application of the SPH-products in sports- and energy-drinks.
I addition to improved SPH-yield , the changes to the production may also make HBC able to separate calcium and PHP, which can open for sale and distribution of calcium products to the more profitable human nutrition market. Separated PHP will remain a feed market product.
Investments related to the re-adjustments are characterized as moderate.
For more information please contact:
Sjur Jenssen, CEO Hofseth BioCare ASA
Tel: +47 9155 3514
Email: sj@h-bc.no
About Hofseth BioCare:
Hofseth BioCare is a Norwegian biomarine company with the key objective to provide high value added biomarine ingredients for human applications. The Company is founded on the core value of sustainability and optimal use of natural resources. Through innovative production technology and logistics, Hofseth BioCare is able to preserve the quality of protein, calcium and oil extracted from fish off-cuts. Products that previously could only be used as animal feed can now be made suitable for human consumption. HBCs objective is thus to contribute to efficient use of marine resources and entering the higher profit market of quality ingredients for human applications.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.