The Economy and Industry Ministry's Investment and Development Authority has approved an investment plan of NIS 94 million ($27.6 million) for Israeli gummy supplement manufacturer TopGum Industries to build another factory in the southern city of Sderot.
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The plan is expected to create 53 new jobs, in addition to the 93 workers the company currently employs.
TopGum began operations in 2004, and within a few years became a major producer of gummy confectionery. In 2018, TopGum leveraged its extensive experience in formulation to launch its functional gummy supplements portfolio.
Last year, TopGum launched its sugar-free vegan gummy supplement line of Gummiceuticals. The patent-pending formulation is based on a dietary prebiotic fiber formulation and uses no added sugars or any sugar alcohols. It can be labeled as "sugar-free" in the US.
The company has already begun construction of its new, $30 million, 11,000-square-meter plant 1.5 hours south of Tel Aviv. The facility, joining the company's existing production plant, is expected to be fully operational in mid-2023 and triple TopGum's production capacity.
Fully equipped with high-precision manufacturing technology adapted to TopGum's propriety production process, the new facility will include robotics and automated systems throughout the production line, with cutting-edge technology and meets FDA and TGA regulations.
Economy and Industry Minister Orna Barbivai said: "The establishment of the cutting-edge factory in Sderot is wonderful news for the entire [southern] region and Israeli industry. The Economy and Industry ministry is committed to supporting blue-and-white industry, through grants provided by the Investment and Development Authority and in any way that increases productivity, advances innovation, and creates new jobs."
Sderot Mayor Alon Davidi called the investment "tremendous and important tidings on the local level but also on the national level. This is for Israeli pride, because if we thought that cutting-edge innovation can only be found in high-tech and cyber, then local industry is proving otherwise. TopGum's courageous decision to stay in Sderot in times that were tough from a security perspective has led to this successful outcome. We will continue to stand alongside the industrialists and company owners. We will support them and strengthen local employment, and thus bolster the Israeli economy."
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According to the head of the Investment and Development Authority, Shlomo Attias, "Approval of the plan to invest in the TopGum factory in Sderot is another reflection of our efforts to increase industrial productivity, bolster the periphery, and accelerate economic growth. The food-tech industry is in a period of growth and the plan we approved will give another push in this important field. TopGum is further proof that Israeli innovation doesn't end with high-tech and cyber, and can also be found on the assembly lines and outside of Tel Aviv."
Hai Yakov Hayoun said: "On behalf of myself and the management team, I want to thank the Investment and Development Authority and the Economy and Industry Ministry for believing in and helping us over the years. The factory that is being built will consist of two production divisions. One will operate under the FDA's strict Current Good Manufacturing Practice (CGMP) regulations for pharmaceutical products. The factory will be equipped with the most advanced technology of its kind. We are proud to establish another factory in Sderot and to support the residents of the south, as we have done for years."
