Bio Succinic Venture
CJ would own a 65% stake in the joint venture, with BioAmber in control of the remaining 35%. The jv would be located at an existing CJ fermentation facility in China, which the South Korean company would retrofit at its own cost. The location of the plant was not disclosed. The deal calls for the joint venture to pay BioAmber a technology royalty for access to its bio-succinic acid technology, while CJ would be paid a tolling fee for producing the material. The two companies also set out a mutual right-of-first-refusal to retrofit additional CJ fermentation facilities for the technology globally.
Paving the way for the set-up, BioAmber will sell to CJ some of the bio-succinic acid produced at its plant in Sarnia, Ontario / Canada â€“ which began operating at commercial scale in 2015 (see Plasteurope.com of 28.10.2015). The South Korean company will then proceed with market development in both South Korea and China starting in H1 2017.
The proposed jv follows CJâ€™s earlier purchase of Metabolixâ€™s biopolymer assets (Photo: Metabolix)
The announcement follows CJâ€™s recent acquisition of the biopolymers slate of Metabolix (Cambridge, Massachusetts / USA; www.metabolix.com), its former partner in a 10,000 t/y PHA plant in the US (see Plasteurope.com of 24.08.2016). It is likely that some of the facilities formerly operated by Metabolix will become part of the proposed jv with BioAmber as well.