By streamlining the supply chain and reducing shipping costs, it has transitioned production of its heat exchange probe technology from China to Israel, expediting production and installation, as well as significantly increase its profit margin.
Roots Sustainable Agricultural Technologies Limited (ASX:ROO) has started installing more than 1,000 heat exchange probe units at the My Green Fields cannabis farm in Northern Israel.
This is the first deployment of Israeli‐manufactured heat exchange probes on a large commercial scale.
By streamlining the supply chain and reducing shipping costs, Roots has transitioned production of its heat exchange probe technology from China to Israel, allowing the company to expedite production and installation, as well as significantly increase its profit margin with each sale.
Roots executive chairman and chief executive officer Boaz Wachtel said: “Commencing production of our technology in Israel is an important step for Roots.
“We are confident that this strategic decision will allow us to aggressively pursue opportunities with a range of commercial growers.
“Following recent regulatory shifts, management is closing in on a number of sales contracts with cannabis cultivators in Israel, the USA and Europe.
“We are also making strong progress with the company’s plant‐based meats division and look forward to updating shareholders very soon on some exciting progress.”
Read the article by Rachel Middleton in ProActive.