Europe’s HempFlax Group B.V. said it plans to invest roughly €3 million to transform its Oude Pekela, Netherlands factory into a facility that will expand production capacity while generating excess energy.
The company has already abandoned gas as a power source and will install 1.9 MWh of solar panels next year, according to an email sent to its customers Wednesday, Nov. 17.
HempFlax said it believes it can double production capacity while also going “energy positive” when it completes an investment project that started with the installation of a new fully automatic packaging machine that is already operational. The expansion is expected to be completed in the first half of 2022.
“Our factories have been producing continuously for the past year,” HempFlax said in the email. “It is becoming increasingly clear that hemp is an extremely future-proof raw material.”
The legacy European hemp operator said it is also renewing its vehicle fleet and expects delivery of a first hydrogen-powered vehicle by the end of the year as it expands efforts to trim the company’s carbon footprint.
Strong 2020 results
HempFlax, which has operations across Europe, reported in May of this year that 2020 revenues grew 43% to €14.5 million, driven in part by a 42% increase in sales of CBD, and a 1,089% increase in construction materials sales. EBITDA rose 63% to €1.8 million in 2020, with before-tax profits rising 616% to €659,000 from €92,000 in 2019.
The company said 2020 brought revenue growth in every category in its diversified portfolio that includes CBD; high-quality fibers for hemp-based plastics; construction materials; horticulture and animal bedding; and genetics and farming.