Located at Two Harbors, near Duluth, Minnesota, the company says construction of the facility is due to start in March or April of this year. Once completed it will use patented technology to separate and process the bark into pellets that will then be further processed into commercial quantities of Betulin extract.
Betulin and Betulin acid have demonstrated effectiveness as antifungals, antibacterials, antivirals and biocides for use in a variety of cosmetic applications, including use as a preservative.
NaturNorth CEO David Peterson said, "The Two Harbors operation is an integral part of our overall strategy to construct a production facility and a demonstration site for our technology and lay the groundwork for further expansion as commercial opportunities develop," he said.
The new facility, which will initially employ five people on a single shift basis, will obtain its bark supplies as a waste by-product of forest products operations.
After nearly a decade of research, betulin extract was launched onto the market as a serious ingredient for cosmetic products at the end of 2004. Although it has been used for over 200 years, it has never been manufactured in large quantities.
NaturNorth believes it is the first company in North America to undertake serious production. The aim is to supply manufacturers of a variety of skin care products.
According to research work carried out at the University of Maryland, Betulin will be used in skin-care products because of its ability to protect healthy skin cells and is recommended for all sorts general skin care creams and treatments because of its skin toning properties.
Betulin a powdery substance in the outer bark of the birch tree is now readily used as a cosmetic ingredient. At well as general skin care, it has also been shown to help wounds heal faster and cut inflammation.
NaturNorth already offers the pure compounds found in the bark to companies such as Estee Lauder, Elizabeth Arden and Almay and also supplies International Specialty Products, a New Jersey company that sells specialty chemicals and mineral products to cosmetic companies.
"We expect to expand our list of strategic partners to introduce birch-based compounds into a wide range of bioactive applications and will be announcing applications as they reach commercial stages," Peterson said.
Together with cosmetics manufacturers, the company is also aiming to supply pharmaceutical, crop protection products and for the manufacturing of a host of preservatives, some even used for cosmetics.