June 2, 2006

AgraTech International plans to build US$6 million shrimp plant

AgraTech International Inc, a New Jersey-based biotechnology startup is hoping to build a US$6 million shrimp processing plant in South Carolina, a move that organisers said could revive the state's endangered industry.

The company said it originally intended for the plant to be sited along the Gulf Coast in New Orleans. However, the damage caused by Hurricane Katrina last year forced the company to change its location.

The plant, the only major seafood-processing facility of its kind in South Carolina,  would be a 2-in-1 operation, preparing locally caught shrimp for supermarket clients while also extracting chitosan from the shell waste. Chitosan has various commercial uses, but AgraTech plans to sell the plant-enhancing stimulant to the farming industry.

AgraTech's announcement came at a time when the shrimping industry is beset with cheap imports from Asia and rising fuel costs.

The start-up would need to raise about 20 percent of the plant project to qualify for a loan from the USDA. Currently, the company has at about half that amount.

The company said their primary goal is to gain the cooperation of shrimp fishermen as it regards that as the vital component to the success of its operation.