Mitsui & Co. invests additional $25M in BioAmber
February 11, 2016 - BioAmber Inc. has received an additional $25-million investment from Mitsui & Co. Ltd., its partner in its bio-based succinic acid plant in Sarnia, Ont.
By Andrew Snook
The additional $25 million investment is in exchange for an additional 10 per cent of the equity in the joint venture project, increasing Mitsui’s stake from 30 per cent to 40 per cent, according to a recent press release from BioAmber.
“Mitsui’s increased commitment to the Sarnia plant is a strong endorsement of its value and potential,” said Jean-Francois Huc, CEO of BioAmber. “We have in Mitsui, a financially robust, global partner that is motivated by Sarnia’s progress and prospects. This investment strengthens Sarnia’s balance sheet as we ramp up production and sales.”
Mitsui will also have an increased role in the commercialization of the bio-succinic acid produced at the Sarnia plant and will provide dedicated resources to work alongside BioAmber’s commercial team.
“Mitsui is continuously committed to renewable chemistry and through our increased equity stake we will be more actively involved in joint venture management and sales, leveraging our global sales platforms,” said Hidebumi Kasuga, general manager, specialty chemicals division, basic chemicals business unit. “We are very happy with Sarnia’s fermentation and plant operations performance to date and the JV has received quality certifications from more than 90 customers. With this progress, I am confident that Sarnia’s bio-succinic acid will be penetrating the global marketplace quickly.”
BioAmber will maintain a 60 per cent controlling stake in the joint venture.