Minneapolis, Minnesota – Biopolymer maker BioAmber Inc reported a fall of 46% in gross profit for Q1 2014 to $70,801 (EUR51,600) compared to $132,216 during the first quarter of 2013.
Sales were up 5% - at $351,000 during the first compared to $331,000 in Q1 2013.
The Q1 report outlined the progress of the new biosuccinic acid plant in Ontario, Canada – a joint venture with Mitsui.
BioAmber’s Q1 report said: “We have commenced construction and the initial phase is expected to be mechanically complete by the end of 2014 or early 2015, at which time we plan to begin commissioning and start-up.
“The facility will have an initial projected capacity of 30KT/year for bio-succinic acid and could be expanded to produce another 20Kt/year. Completion of the initial phase is expected to cost around $125m.
Funding for the project has been split between the two companies, a contribution of $56m from BioAmber and $24m from Mitsui. The remaining funding has been secured through loans, the company report stated.
Plans for further plants were briefly outlined in the report too. It said: “Based on current estimates, we expect our second manufacturing facility to have a projected initial bio-based 1,4 BDO capacity of 100kT/year and construction costs of approximately $350m and be mechanically complete in 2017.”
XE Currency conversion: 16 May, 2014