BioAmber signs supply aggrement with Xuchuan
October 2, 2014
By Canadian Biomass
October 2, 2014, Montreal, Que. - BioAmber Inc. announced it has signed an exclusive supply agreement for bio-based succinic acid with Xuchuan. Under the terms of the five-year contract, which runs from 2015 to the end of 2019, BioAmber Sarnia will ship to Xuchuan's Chinese facilities bio-based succinic acid it has produced in Sarnia, Ont.
October 2, 2014, Montreal, Que. – BioAmber Inc. announced it
has signed an exclusive supply agreement for bio-based succinic acid with
Xuchuan. Under the terms of the five-year contract, which runs from 2015 to the
end of 2019, BioAmber Sarnia will ship to Xuchuan's Chinese facilities
bio-based succinic acid it has produced in Sarnia, Ont.
Xuchuan is a top five global producer of polyester polyols,
which are used to produce a wide range of products including paints and
coatings, polyester resins and synthetic leather. Xuchuan operates four
polyester polyol plants in China and has an annual production capacity of
150,000 tons. Xuchuan is initially launching PU systems for cast polyurethane
elastomers (CPU) made with bio-succinic acid. CPU is used in applications
including automotive instruments, caster wheels, industrial and mining
equipment, power tools, industrial tires, coating rolls, drive belts, mold
makers and hoses.
By replacing adipic acid with succinic acid, Xuchuan has
produced CPUs that offer better properties: they are more abrasion/scratch
resistant and more resistant to solvents. The forecasted succinic acid volumes
in the contract for this initial application are 300 to 500 tons per year. Xuchuan
is broadening its line of sustainable, bio-succinic acid based polyester
polyols to other applications, including resins for shoe soles, coating and
synthetic leathers. BioAmber projects the long-term sales potential to Xuchuan
for these applications could be several thousand tons of succinic acid per
"Our deal with Xuchuan is further validation of the
growing market for our bio-succinic acid," said Babette Pettersen, BioAmber's
Chief Commercial Officer. "This supply agreement is indicative of the
volumes that can be generated from a single customer in one application segment.
Our contract with Xuchuan demonstrates that our bio-succinic acid can improve
the performance of materials such as CPU and that it is price competitive in
the Chinese market," she added.
"Xuchuan is committed to developing and commercializing
innovative polyester polyols that are competitive and sustainable. By
incorporating BioAmber's bio-succinic acid into our polyols, we can offer our
Chinese customers and export markets a new generation of products that have
superior performance and an improved carbon footprint" said Dr. Lawrence
Hu, Technical Manager of Xuchuan.
BioAmber's Sarnia plant is expected to be completed in early
2015 and will have an initial capacity of 30,000 tons per year. BioAmber has
signed take-or pay agreements that commit 50 per cent of the output over the
first three years of production, and has committed the balance of available
capacity in 2016 and 2017 by signing 20 supply and distribution
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