Locally produced succinic acid is being used to make a biodegradable plastic to replace single use plastics overseas.
LCY Biosciences General Manager Dex Hsu said a thin layer of the plastic is used in paper cups.
"The purpose of this plastic is actually to prevent the paper from getting soaked by water," said Hsu.
He said their business is being driven by an abroad market right now.
"We export 98 per cent of our product to Asia and Europe. Especially Europe, because Europe [has had] single use plastic regulations for many years."
But, he said interest is picking up in Asia.
"The biggest change is the regulatory change in China and a lot of other countries. When a country says that it's going to regulate one time use plastic, biodegradable plastic from our product is definitely one of the solutions."
Hsu said the Sarnia site currently has just over 50 employees.
"With everything going well, we are looking to get [full] capacity of this plant next year and then we will decide if we want to further expand our production line."
He believes the Vidal Street operation in the Bio-Industrial Park is the biggest in the world and said if Canada were to ban single use plastics they would be ready to supply alternatives.
Hsu said they're also continuing work to commercialize a nutraceutical operation to make products like vitamin A and beta carotene.
"We are thinking about expanding that new production line in Sarnia as well."