EcoSynthetix Responds to Announcement from FutureMark Alsip Mill
BURLINGTON, ON, Aug. 22, 2014 /CNW/ - EcoSynthetix Inc. (TSX: ECO), a renewable chemicals company that produces a family of commercially proven bio-based products, responded today to the announcement by FutureMark Paper that it intends to idle its FutureMark Alsip paper mill indefinitely starting in September. This mill represented sales of approximately $2.5 million for EcoSynthetix on a trailing twelve month basis, or 12% of sales. EcoSynthetix has approximately $800,000 of credit exposure with FutureMark Alsip currently and is in contact with the customer regarding collection.
"This is a disappointing setback for our North American sales. It's clear now that FutureMark was experiencing significant pricing pressure in its markets. FutureMark had consistently increased their substitution rate of our EcoSphere® biolatex® binder as a means of reducing costs while maintaining quality. They saw the value in our sustainable alternative compared to the higher priced petroleum-based binders," said John van Leeuwen, CEO of EcoSynthetix Inc. "While this news is unfortunate, we remain confident in the value our bio-materials provide customers across multiple markets, from paper and paperboard to building materials like wood composites."
About EcoSynthetix Inc. (www.ecosynthetix.com)
EcoSynthetix Inc. is a renewable chemicals company specializing in bio-based products that can be used as inputs in industrial manufacturing for a wide range of consumer products. The Company's products offer a reduced carbon footprint and are marketed primarily on the basis of lower cost, stable pricing and equal or superior performance. EcoSynthetix's lead product, EcoSphere® biolatex® binders, is used commercially by a number of the global top 20 manufacturers in the coated paper and paperboard industry.
Forward Looking Statements
Certain statements in this Press Release constitute "forward looking" statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of the Company, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward looking statements. These statements reflect our current views regarding future events and operating performance and are based on information currently available to us, and speak only as of the date of this Press Release. These forward looking statements involve a number of risks, uncertainties and assumptions and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such performance or results will be achieved. Those assumptions and risks include, but are not limited to, the fact that our results of operations and business outlook are subject to significant risk, volatility and uncertainty. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking statements, including the factors identified in the "Risk Factors" section of the Company's Annual Information Form dated March 31, 2014. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described in this Press Release as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, we do not intend and do not assume any obligation to update these forward looking statements.
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