BioAmber’s goal is to be a leading provider of sustainable chemicals by replacing petroleum-based chemicals with its bio-based alternatives, which the company believes could revolutionize the global chemical industry. BioAmber intends to achieve this by pursuing the following five strategies.
Rapidly Expand Global Manufacturing Capacity
As demand for its products grows, BioAmber intends to rapidly construct new facilities in multiple geographic regions employing a design that facilitates expedient and capital-efficient growth. BioAmber intends to retain operational control and a majority interest in these facilities and collaborate with third parties to obtain capital, construct the facilities, secure feedstock, sell future output and assist with manufacturing and market access.
Target the Large and Established 1,4 BDO Market
BioAmber is developing high-volume, high-value bio-succinic acid derivatives such as bio-based 1,4 BDO, which is used in the production of polyesters, plastics, spandex and other products. BioAmber has entered into a joint venture agreement with Mitsui to manufacture, market and sell bio-based 1,4 BDO and leverage Mitsui’s strength as a leading distributor of chemicals to target what the Company believes is a $4 billion market for 1,4 BDO.
Develop Next-Generation Succinic-Derived Products
BioAmber intends to leverage its proprietary technology platform and expertise in the production of bio-succinic acid to target additional high value-added products, such as bioplastics and plasticizers. BioAmber expects that these high value-added chemicals will offer better performance than the petroleum-derived products that they seek to replace.
Continue to Reduce the Cost of its Products
BioAmber’s goal is to be the low-cost producer of the bio-based chemicals it manufactures, which it expects will drive market acceptance of its products across several applications. The company believes it has inherent advantages in its proprietary production process and it intend to further reduce its production costs by switching from its E. coli organism to a yeast, increasing the scale of its manufacturing process and introducing new proprietary technologies.
Expand Product Platform to Additional Building Block Chemicals
BioAmber intends to leverage its flexible technology platform and extensive experience developing, producing and marketing bio-succinic acid to expand its product base to additional building block chemicals, including adipic acid and caprolactam. These products are used in the production of carpeting, rugs, textile laminations, garment linings, adhesives for shoe soles and resins used in the paper products industry.