Fish oil company SeaDragon says it will proceed with a new refinery southwest of Nelson after raising $2 million in new capital with the placement of shares to eligible investors.
``Worldwide demand for Omega-3 rich fish oil is growing rapidly supported by a compelling body of scientific literature on the human health benefits of Omega-3 rich diets,'' chairman Doug Wilson.
``SeaDragon's new refined fish oil plant will allow the company to take advantage of this opportunity and ensure we can meet demand well into the future.''
SeaDragon, the largest producer of refined fish oils in Australasia, exports about three quarters of its products. The company expects to complete its new factory on the outskirts of Richmond in the fourth quarter of 2014 and will likely move production of shark liver oil, squalene and krill oil from its Nelson site when the current lease expires.
The company's base in Nelson allows it access to Hoki fisheries as well as Salmon farmed in the Marlborough Sounds. Oil from both species are rare and can attract a premium over the anchovy oils that dominate the Omega-3 fish oil market, the company said.
