Daesang 1st Korean Co. to Localize Production of Astaxanthin, Exports Substance to Japan
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Daesang 1st Korean Co. to Localize Production of Astaxanthin, Exports Substance to Japan
Dedicates astaxanthin plant to mass produce functional ingredient in Gunsan Bio Production Complex in Jeollabuk-do

27(Tue), Jun, 2017




Daesang President Chung Hong-won and JXTG NOE Chairman Dakehide Gasai pose with other company officials at  an event to dedicate the astaxanthin plant in Gunsan, Jeollabuk-do, on June 7. (Photo: Daesang Corp.)


Daesang Group has dedicated an astaxanthin plant to mass produce the functional ingredient in the Gunsan Bio Production Complex in Jeollabuk-do. Astaxanthin, a powerful antioxidant, had so far been imported since there were no facilities and technologies to produce the antioxidant in Korea.

All astaxanthin production is expected to be supplied to the bio business division of JXTG Hippon Oil & Energy (JXTG NOE), one of Japan¡¯s biggest energy and refining companies. In March 2016, Daesang signed a 30 billion won deal to supply astaxanthin with JXTG NOE.

Astaxanthin an antioxidant effect 550 times more powerful than Vitamin E. The substance is highlighted as additives of aquaculture feed for fish, including salmon and shrimp as an antioxidant and functional health food. A report by the U.S. Department of Agriculture showed that astaxanthin has an antioxidant effect more than 6,000 times better than Vitamin C, 800 times more than coenzyme Q10, and 550 times more than catechin, which is in green tea.

Astaxanthin is a natural color to make salmon red. The substance is used to color shrimp, crab, salmon and sea bream red. The U.S. Food & Drug Administration approved astaxanthin as a functional material of heath and functional foods in 2007, and as a new functional material in 2012. In an early stage of development, astaxanthin was used as a cosmetics raw material due to its ability to block ultraviolet rays, but the substance is now certified as an antioxidant and raw material of nutritional supplements. 

Global companies around the world are scrambling to conduct research on astaxanthin due to the rising possibility that it could be used to treat failing eye sight, damaged muscles, atoppy, helicobacter, brain disease and other issues associated with aging. 

Global players, including BASF of Germany, Cyanotech of the United States and Fuji Chemical of Japan, have jumped into the astaxanthin market, which is showing an annual growth rate of 8 percent. Globally, a combined 200 tons of astaxanthin was consumed as of last year. The U.S. market survey institution Market Research Post Store reported that the astaxanthin market is predicted to surge from $553.6 million (about 62.17 billion won) this year to $814.1 million (about 914.1 billion won) in 2020.

Fewer than 10 countries, including the United States, Japan and Israel, have facilities to mass produce astaxanthin. Cultivating haematococcus, a fresh water species, to extract astaxanthin is not easy. 

Daesang has made facility investments after signing a deal on transfer technology and the supplying of astaxanthin with JXTG NOE in March 2016.

The global astaxanthin market is expected to keep growing as the demand for salmon and trout, as well as health and functional foods, are expected to expand due to rising middle-class populations around the world, a Daesang official said. 

Among those on hand at an event to dedicate the astaxanthin plant were Daesang President Chung Hong-won and JXTG NOE Chaikrman Dakehide Gasai. 

¡°Daesang has begun a full-fledged production of astaxanthin in about one year after signing a deal to supply the substance,¡± Daesang President Chung said.

Daesang plans to supply quality astaxanthin products based on the knowhow and technology it developed over the past 60 years, and JXTG NOE¡¯s astaxanthin production expertise, he added. 


   
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