MINNEAPOLIS, MN, March 3, 2015 /CNW Telbec/ - BioAmber Inc. (NYSE: BIOA), an industrial biotechnology company producing sustainable chemicals, today announced it has initiated commissioning activities for its 30,000 MT capacity bio-succinic acid plant located in Sarnia, Ontario, Canada.
Commissioning and start-up is expected to take approximately five months, with the facility being in commercial operation in Q3 2015. The Company expects construction to be completed in two months and it is carrying out commissioning and start-up activities in parallel. The cost of the project continues to track within the original budget estimate of US$125 million +/- 10%.
"This is a significant milestone for BioAmber, which is poised to begin a period of rapid growth," said Jean-Francois Huc, Chief Executive Officer. "During the commissioning phase we will test the plant and get it running section by section, produce bio-succinic acid and qualify it with our customers and begin to sell product that meets specifications. We plan to be in full commercial operation in Q3 2015, by which time we can reliably supply customers including our take-or-pay contracts".
The Sarnia plant will be the world's largest succinic acid manufacturing facility, with an annual nameplate capacity of 30,000 metric tons. BioAmber has signed take-or-pay agreements with Vinmar and PTTMCC (a joint venture between PTT PLC and Mitsubishi Chemical) that represent sales volumes of over 5,000 metric tons in 2015 and 15,000 tons in each of 2016 and 2017. BioAmber has also signed a number of supply agreements with non-binding volume commitments that collectively exceed the available capacity in the plant.
A further update on the commissioning and start up plan will be provided during the Company's upcoming earnings call scheduled March 12th, 2015 at 16:30 ET.
BioAmber (NYSE: BIOA) is an industrial biotechnology company producing sustainable chemicals. Its proprietary technology platform combines industrial biotechnology and chemical catalysis to convert renewable feedstock into sustainable chemicals for use in a wide variety of everyday products including plastics, resins, food additives and personal care products. For more information visit www.bio-amber.com
This press release contains forward-looking statements, including statements related to the projected capital costs, scheduled completion and beginning of commercial operations of the Sarnia facility, as well as to the manufacture of products at our Sarnia facility and future sales. All statements other than statements of historical fact in this press release are forward-looking statements. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "seek," "will," "may" or similar expressions. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond BioAmber's control. BioAmber's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee that the events and circumstances reflected in the forward-looking statements will be achieved or occur and the timing of events and circumstances and actual results could differ materially from those projected in the forward-looking statements. Accordingly, you should not place undue reliance on these forward-looking statements. All such statements speak only as of the date made, and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. For additional disclosure regarding these and other risks faced by BioAmber, see disclosures contained in BioAmber's public filings with the SEC including, the "Risk Factors" section of BioAmber's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the Quarter ended September 30, 2014.
SOURCE BioAmber Inc.
For further information: Mike Hartmann, Executive Vice President, BioAmber Inc., (514) 844-8000 extension 120, [email protected]