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- Mitsui & Co., Ltd.
Corporate Communications Division
Mitsui & Co., Ltd. ("Mitsui", head office: Chiyoda-ku, Tokyo, President and CEO: Masami Iijima) and Canadian biochemical venture business BioAmber, Inc. ("BioAmber") have agreed to carry out the world's first biosuccinic acid production business and concluded a joint venture contract for the establishment of a new company.
Since BioAmber's establishment in 2009, Mitsui has invested in the company and has continued to support its growth through capital increases. Mitsui has posted directors to participate in BioAmber management, in addition to carrying out exclusive pre-marketing activities for biosuccinic acid in Asia. Recently, the decision was made to invest in commercial plants after deciding that future growth can be expected in biosuccinic acid business.
The project aims to produce cost-competitive biosuccinic acid from sustainable biomass resources and to promote the spread of biomass-derived chemicals ("green chemicals") with a variety of applications, including in the fields of biodegradable resins and polyurethanes. The aim is to produce derivative products that use biosuccinic as a raw material, such as 1,4 butanediol (BDO) and tetrahydrofuran (THF), which are expected to see increasing growth in the future.
Mitsui and BioAmber plan for the first plant to go into operation in Canada in early 2013, with a view to construction of a second plant in Thailand and a third plant in Brazil or North America (with total production across the three plants of 164,000 tons). For the second plant, a partnership with Mitsubishi Chemical Corporation and PTT Public Company Limited's (Thailand) joint venture company PTT MCC Biochem is being examined.
As part of the efforts to diversify fossil fuel resources such as crude oil and gas, as well as chemical raw materials, Mitsui aims to promote the use of chemicals with a lighter environmental impact as it seeks to support the creation of a sustainable future in consideration of the global environment. Mitsui will work hard to build value chains through integrated production of chemicals made from biomass resources, such as sugar and oils ("green chemicals").
|Location||Sarnia, Ontario, Canada|
|Business content||Production of bio-succinic acid, BDO and THF|
|Investment ratio (post-investment)||BioAmber: 70%
|Mitsui investment||Approx. CAD 15 million|
We believe that the financial impact of the project on the company's performance in the fiscal year ending March 2012 should be limited.
|Location||Montreal, Quebec, Canada|
|President||Jean Francois Huc|
|Main business||Production and development of bio-succinic acid, and development of BDO and THF|
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently available to it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.