“Now that the Sarnia plant is ramping up, full ownership enables BioAmber to retain 100% of projected profits, while continuing to benefit from Mitsui's marketing and distribution capabilities."
In the same month that it announced record revenues for its second-quarter results, BioAmber has taken 100% ownership of the world’s largest succinic acid plant, buying the only other stake from Mitsui & Co. (Mitsui). The quarterly revenue of £1.09m ($4.1m) was revealed to be a 64 percent rise on the same period in 2016, Fabrice Orecchioni, president and COO of Canadian company BioAmber, told investors.
The purchase of the manufacturing plant, which is located in Sarnia in Canada, was built as part of a joint venture with Mitsui that will continue to see the Japanese company distribute BioAmber’s succinic acid in Asia and other markets to fulfil its corporate responsibilities. The second quarter of the year proved a good one for BioAmber in terms of client numbers buying its bio-succinic acid, adding nine new customers in that period that nearly doubled its client list to 16.
The company appeared to align the company’s positive performance with the new plant in Ontario. Mike Hartmann, president of BioAmber Sarnia, said he believed the company’s capacity would provide it with “a solid foundation for 2018” following the August purchase.
“We are pleased to report our second quarter 2017 results generated BioAmber's largest quarterly revenue ever. Year to date we have experienced the greatest acceleration in new customers and new applications since our Sarnia facility was commissioned,” said Hartmann.
Orecchioni called the latest transaction a “meaningful opportunity” for BioAmber shareholders that would help safeguard the company’s future. “Now that the Sarnia plant is ramping up, full ownership enables BioAmber to retain 100% of projected profits, while continuing to benefit from Mitsui's marketing and distribution capabilities, especially in Asia."
An entirely bio-based operation, BioAmber Sarnia’s plant in Ontario differs from the vast majority of plants located in the 15-square-mile area known as Chemical Valley, which contains more than 60 non-bio refineries and chemical plants – around 40 percent of Canada’s chemical industry. BioAmber Sarnia makes renewable chemicals from sugar instead of petroleum, using the latest technologies to produce bio-based succinic acid from glucose sourced from agricultural suppliers in southern Ontario.
The project has received support from the Government of Canada and the Government of Ontario through the Ontario Ministry of Economic Development, Employment and Infrastructure’s Strategic Jobs and Investment Fund.
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