Layn Natural invests US$60m in new CBD manufacturing facility in US

USA – China based Guilin Layn Natural Ingredients Corp. has invested approximately US$60 million in a new CBD manufacturing facility in the US.

The facility is expected to be completed in 2020 with a capacity to process about 5,000 tons of hemp biomass per year, which will yield 160 tons of high purity CBD and 290 tons of full spectrum oil annually.

The investment aims to keep pace with the fast-growing cannabis-infused industry, which is promising despite the pending legal approval in some markets.

“We chose to invest in the CBD industry because it is a trending hot topic,” Elaine Yu, CEO of Layn, tells FoodIngredientsFirst.

“Even though this market seems crowded, not very many of these players come from this industry – many are ‘outsiders’ like farmers or extraction equipment manufacturers.

“From Layn’s perspective as an ingredients manufacturer, we are utilizing our 20+ years of experience and expertise in extraction, agriculture management, sustainable supply chains and understanding food safety requirements.”

The company has also launched a new line of cannabidiol (CBD) ingredients.

The CBD ingredients will be available in a number of forms, including full-spectrum oil, broad spectrum oil, CBD distillate and crystallized isolate, offering the purest CBD.

Layn has showcased two beverage concepts: a cucumber-flavored anti-inflammation drink infused with CBD (roughly 21mg per 200mg serving) and Gotu kola, using stevia and monk fruit as zero-calorie sweeteners; and a fruit-flavored anxiety-relief drink infused with CBD and Rhodiola extract.

Potential of the CBD market lies in the ability to expand the use of CBD in different foods and beverages, apart from the traditional formats such as pills, tinctures or topical delivery.

In addition to vapes, oils and topics, the most common delivery methods of CBD are “edibles” such as baked goods and gummies.

“Our world-class R&D team has developed advanced botanical extraction technology that we are now applying to hemp farming and CBD extraction,” said Frank Xie, Board Director of Layn.

“We have also taken great care in building a sustainable supply chain for the ingredients we offer and are committed to carrying this expertise into our CBD line.”

Manufacturers are hoping on this category despite pending approval by FDA, which is looking to create “legal pathways” for the compounds use in food and beverage applications.

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