BioAmber has announced record revenues for the second quarter of this year and is buying Mitsui & Co Ltd.'s stake in its Sarnia plant.
The Montreal-based company says sales of bio-succinic acid for the three months ending June 30 were $4.1-million, an increase of 64% over the second quarter of 2016.
BioAmber has also entered into an agreement to buy Mitsui's entire minority stake in the Sarnia manufacturing joint venture. Once the transaction closes, BioAmber will own 100% of the Sarnia plant.
Mitsui will still continue to distribute BioAmber's bio-succinic acid in Asia and other markets.
BioAmber President and COO Fabrice Orecchioni says the transaction is a meaningful opportunity for company shareholders.
"Now that the Sarnia plant is ramping up, full ownership enables BioAmber to retain 100% of projected profits and explore new opportunities with potential partners for the Sarnia facility," says Orecchioni.
In the meantime, BioAmber is still looking at building a second plant in either Sarnia or Louisiana.
The proposed $500-million US plant would be considerably larger than the existing $141-million facility on Vidal St. that produces succinic acid from Ontario corn.
BioAmber has been trying to secure loan guarantees from the U.S. or Canadian governments.
A decision on where the plant will be located is expected sometime this year.
BioAmber has an option on land at TransAlta's Bluewater Energy Park.