Yeast extract are widely used in the food industry as taste enhancers and to enable to reduction of additives like salt and monosodium glutamate.
The company announced the expansion of its plant in Boyceville, Wisconsin, in July 2006, at which time it also said it would increase capacity for baker's yeast extract at its plant in Hamburg.
Planned investments were said to exceed $15m. Foehlisch told FoodNavigator.com that the company is acting on the potential it sees in expanding into brewer's yeast extract, which is largely used to bring out flavour in dairy and cheese products.
This new direction was spurred by a request from a customer.
In addition to producing all three kinds of yeast extract and natural flavours in powdered form (such as vinegar and honey) in Boyceville, Ohly also produces torula extracts at its plant in Hutchinson, Minnesota, and high nucleotide baker's yeast extract in Hamburg, Germany.
The extracts produced in Boyceville are intended primarily for the local US market, said Foehlisch.
The company, which has its headquarters in Germany, was previously active in the US, but Ohly Americas was incorporated only this summer, when it merged with another of ABF Ingredients' subsidiaries Provesta.
This maneuver was rationalized by similarities between the two companies' product lines, and was said to provide "an enhanced focus on production, development and distribution of specialty ingredients for the savoury food and nutrition markets."
This synergistic approach between ABF Ingredients' subsidiaries is further demonstrated by the benefits that the expanded Boyceville centre will bring to Ohly's sister company Protient, which will have access to the new research and development facilities.
Robert Rouwenhorst, head of ABF's proteins division, said: "These investments will strengthen our abilities to develop and manufacturer protein and yeast-based derivatives for the food and nutrition market."
Protient's Norfolk, Nebraska plant was also included in the recent expansion programme, becoming the first US domestic producer of milk protein isolates.
ABF Ingredients says it has established strong market positions in enzymes, polyols, yeast extracts, speciality lipids, emulsifiers, cereal specialities and proteins and has 36 locations worldwide.
ABF Ingredients is a division of Associated British Foods, comprising of a range of ingredient companies operating under their own identities and business models.