Metabolix Inc, the US-based advanced biomaterials company focused on sustainable solutions for the plastics industry, has entered into a memorandum of understanding (MoU) with Korean firm CJ CheilJedang Corporation (CJ) for a strategic commercial manufacturing arrangement for specialty polyhydroxyalkanoates (PHAs), including Metabolix’s newly launched amorphous PHA (a-PHA).
As per the MoU, the companies have agreed to work together toward the successful conclusion of definitive agreements under which CJ will fund, construct and operate a 10 kilo tonne (KT) PHA production unit at CheilJedang’s Fort Dodge (Iowa, USA) facility based on Metabolix's PHA technology. Under the contemplated definitive agreements, Metabolix will buy the specialty PHAs produced at the Fort Dodge facility from CJ, and market and sell the materials to its commercial customers. The companies also expect to define a framework for longer term expansion of the collaboration for larger scale PHA production and related commercial activities.
In late 2015 and early 2016, Metabolix and CJ undertook a comprehensive feasibility study and assessment of CJ's Fort Dodge facility as a potential site for specialty PHA production. With the successful conclusion of the feasibility study and engineering plans, CJ is finalising a detailed budget for the capital investment needed to establish 10 KT of annual PHA capacity on the site and the two companies are turning their attention to the definitive agreements for the project.
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In 2015, Metabolix launched a-PHA from pilot production, and in 2016 is focused on securing initial and recurring sales across the target application spaces in anticipation of growing customer conversions and orders to baseload the new commercial capacity contemplated by the MoU with CJ.
The Fort Dodge production facility is operated by CJ Bio, a division of CJ CheilJedang - one of the leading players in microbial fermentation based R&D and manufacturing for a range of amino acids, including lysine, as well as nucleotides. CJ Bio operates world-scale fermentation facilities in the US, China, Indonesia, Malaysia and Brazil.