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METabolic Explorer & Bio-XCell to Resume Constructions at PDO Production Plant

Published on 2013-06-11. Author : SpecialChem

Clermont-Ferrand (France) and Kuala Lumpur (Malaysia) -- METabolic EXplorer, a green chemistry company that specializes in the development of bioprocesses for the production of chemical compounds used in a wide range of everyday products (textile fibers, paints, solvents, animal feed supplements, adhesives, etc.), and Bio-XCell Malaysia, the promoter tasked with the construction of the plant and biotechnology infrastructure in the Iskandar Region, Johor State in Malaysia, are making the following joint announcement.

After setting out in March this year the conditions required for continuing METabolic EXplorer's plant construction project in Malaysia, the two partners are announcing that they have reached an agreement on the terms and conditions by which the parties would cooperate to resume construction operations of the plant.

The project standstill has been lifted, enabling the launch of a new call for tenders aiming at resuming construction operations in late September 2013.

The scope of the call for tenders is extended to include the latest improvements developed by METabolic EXplorer in its French pilot plant. The industrial 1,3 Propanediol (PDO) production process has been improved upstream with adaptations enabling the use of raw glycerines of different origins and qualities, as well as downstream with additions enabling to co-produce roughly 2,000 metric tons per year of butyric acid, used in the production of fragrances and animal feed additives.

In parallel with these new developments, the productivity of the PDO process is expected to generate a 10% increase of the unit's PDO capacity up to 8,900 metric tons per year. This will significantly improve the units' cash flow generation, thereby enabling Bio-XCell to finance the needed additional capital expenditure (roughly €8 million, for a new total of roughly €38 million).

As part of Bio-XCell's requirements in securing METabolic Explorer's effective takeover of the unit at completion date, METabolic EXplorer France will provide a corporate guarantee with an amount of around €7.3 million. The signature of this corporate guarantee will not impact its current available cash at hand.

The completion for the plant construction is expected to be by end of 2014 as per schedule.

About METabolic EXplorer

METabolic EXplorer is a biological chemistry company which was incorporated in 1999. Its goal is to help industrial businesses deal with the rise in oil prices, so that they can continue to manufacture but in a sustainable way.

Based on the tried and tested principle of industrial fermentation, METabolic EXplorer's solutions replace today's petrochemical processes with the use of a wide range of plant-based raw materials. By optimizing the metabolic yield of non-pathogenic bacteria in a contained, controlled environment, the company facilitates the production of chemical compounds used in a wide range of everyday goods (textile fibers, paints, solvents, plastics and animal feed).

Source: METabolic EXplorer


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