Ultimately, bosses are aiming to ratchet up capacity to almost 500,000kg, said the firm, which aims to complete phase one of the project (a 40,000 sq ft expansion adding an extra 150,000kg/year) by next fall, without a plant shutdown.
The move will create 40 new jobs.
The second phase "would take us from 300,000kg to close to 500,000kg per year, all in one go. It should start in 12 months or so, depending on different strategies, which I can't disclose", Frédéric Harland, director of finance, told NutraIngredients-USA.
New process improvements
Chief finance officer André Godin said: "Today's investment allows for new process improvements at our manufacturing facility.
“This new production line will secure supply for the increasing demand, allowing for incremental gross margin, as well as providing additional production capacity for new products currently under development.
"This increase in production capacity will be completed without any interruption of the existing production line.”
The project will be financed through "a mix of standard loans, interest-free loans subsidies and by a cash contribution of Neptune for approximately 20% of the total cost by using part of the proceeds of its May 2011 financing", said the firm.
Asked what gave the firm the confidence to invest. Harland said: "New business, results from our patents, the product pipeline, milestones, etc....so stay tuned."
Patent protection
Neptune, which recently started trading on the Toronto Stock Exchange, has secured two US patents covering its krill oil extracts in recent weeks.
The first, no. 8,030,348, protects Neptune Krill Oil (NKO) and also covers oils and powders extracted from krill containing marine phospholipids bonded to EPA and/or DHA and distributed and/or sold in the US, and is valid until 2025.
The second, no. 8,057,825, awards Neptune exclusive use of krill extracts in the US as a method for reducing cholesterol, platelet adhesion and plaque formation.