5 year supply agreement is with Oleon, a European leader in oleochemicals
- BioAmber bio-succinic acid is being used to produce bio-based lubricants
- Oleon is developing lubricants offering high performance, biodegradability and bio-based content
- Oleon operates 5 manufacturing facilities: four in Europe and one in Malaysia
- The addressable market for succinic acid in specialty lubricants is estimated to be $100 million
MINNEAPOLIS, Dec. 2, 2014 /CNW/ - BioAmber Inc. (NYSE: BIOA), an industrial biotechnology company producing sustainable chemicals, today announced it has signed an exclusive supply agreement for bio-based succinic acid with Oleon. Under the terms of the 5-year contract, which runs from 2014 to the end of 2018, BioAmber Sarnia, a joint venture with Mitsui & Co., will supply Oleon with bio-based succinic acid for the development and production of succinate lubricants.
Oleon, a division of Sofiproteol, is a leading European producer of oleochemicals (oil derived chemicals). Oleon is developing a new line of succinic acid based lubricants that target 100% carbon renewability. Oleon is combining bio-succinic acid and (bio-based) alcohols to produce a new line of lubricants for industrial uses requiring high performance, biodegradability and renewable content.
Oleon's new line of succinic acid based lubricants targets a strong performance in extreme conditions, including cold weather, where they offer improved temperature flowability without compromising seal compatibility. These Oleon lubricants also offer good physico-chemical properties including oxidation and hydrolytic stability, pour point and color. BioAmber will supply Oleon from its Sarnia plant, which is expected to be completed in early 2015 and have an initial capacity of 30,000 tons per year.
"Oleon's new line of lubricants is a great example of the value and differentiation that bio-based succinic acid can bring in technically challenging applications," said Jean-Francois Huc, BioAmber's Chief Executive Officer. "Our work with Oleon, an innovator in oleochemicals, is helping to drive adoption of new, succinic acid based solutions in the industrial segment of the lubricants market."
"This agreement highlights the importance of collaboration to accelerate innovation in the oleochemical industry," said Moussa Naciri, Oleon's Chief Executive Officer. "We believe that working with sustainable chemical companies such as BioAmber brings fresh ideas and new products offering unique combinations of performance and sustainability for our industry," he added.
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
Oleon NV, a division of the Sofiprotéol group, is engaged in the development, production, commercialization and supply of oleochemical products, and is a leading manufacturer of esters with applications in various markets such as amongst others lubricants and cosmetics. Oleon's global presence is supported by 10 sales affiliates: Benelux, Germany, UK, France, Southern Europe, Northern Europe, Eastern Europe, America, Asia Pacific and China.
This press release contains forward-looking statements, including statements related to the scheduled completion of the planned Sarnia facility and future sales from the facility. 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: BioAmber Investor Contact, Mike Hartmann, Executive Vice President, BioAmber Inc., (514) 844-8000 extension 120, [email protected]