BASF & CSM Form JV "Succinity GmbH" to Produce & Sell Biobased Succinic Acid
- Oct 5, 2012
LUDWIGSHAFEN, Germany, and DIEMEN, The Netherlands -- BASF and Purac, a subsidiary of CSM, are establishing a joint venture for the
production and sale of biobased succinic acid. The company will be called Succinity
GmbH and will be operational in 2013. The establishment of Succinity GmbH is subject
to filing with the relevant competition authorities. The company headquarters will be in
BASF and CSM have been conducting research under a joint development agreement
on succinic acid since 2009. The complementary strengths in fermentation and
downstream processing led to the development of a sustainable and highly efficient
manufacturing process based on a proprietary microorganism. The bacterium used is
Basfia succiniciproducens which produces succinic acid through natural processes and
is capable of metabolizing a variety of renewable feedstocks into succinic acid. The new
process combines high efficiency with the use of renewable raw materials and the
fixation of the greenhouse gas carbon dioxide (CO2) in the production of succinic acid.
This makes biobased succinic acid an economically and ecologically attractive
alternative to petrochemical raw materials.
The demand for succinic acid is anticipated to grow strongly in the years ahead, driven
mainly by bioplastics, chemical intermediates, solvents, polyurethanes and plasticizers.
The two companies are currently modifying an existing fermentation facility, at Purac's
Montmélo site near Barcelona, Spain, for the production of succinic acid. This plant,
which will commence operations in late 2013 with an annual capacity of 10,000 metric
tons of succinic acid, will put the new joint venture company in a leading position in the
global marketplace. This is complemented by plans for a second large-scale facility with
a capacity of 50,000 tons of succinic acid to enable the company to respond to the
expected increase in demand. The final investment decision for this facility will be made
following a successful market introduction.
"Our strategy clearly focuses on innovations for a sustainable future. Chemistry driven
innovations get their clues from megatrends, such as the shift to renewable raw
materials. The development of a succinic acid production process based on
fermentation in cooperation with Purac is a good example of this strategy being put into
practice," said Dr. Andreas Kreimeyer, Member of the Board of Executive Directors and
Research Executive Director of BASF.
"CSM is developing into a leading provider of biobased ingredients and solutions. Our
joint venture with BASF for the production and sale of succinic acid is a milestone in
this journey. The succinic acid project is fully in line with our strategy to develop
commercially attractive biobased alternatives using renewable and sustainable
resources," explained Gerard Hoetmer, Chief Executive Officer of CSM.
"Our cooperation with Purac to produce biobased succinic acid is a perfect example of
how we enable our customers in many industries to develop sustainable solutions," said
Sanjeev Gandhi, President, BASF Intermediates division.
"We know from many discussions with customers and samples we sent them that the
demand for biobased succinic acid for a.o. biodegradable plastics is set to grow faster
and more strongly than expected earlier," said Fabrizio Rampinelli, President of Purac,
and added, "We look forward to providing a high-quality product globally to customers in
this industry at our usual high service levels."
BASF is the world's leading chemical company: The Chemical Company. Its portfolio ranges from
chemicals, plastics, performance products and crop protection products to oil and gas. They combine
economic success, social responsibility and environmental protection. Through science and
innovation they enable their customers in almost all industries to meet the current and future needs of
society. Their products and system solutions contribute to conserving resources, ensuring healthy
food and nutrition and helping to improve the quality of life. They have summed up this contribution in
our corporate purpose: We create chemistry for a sustainable future. BASF posted sales of about
€73.5 billion in 2011 and had more than 111,000 employees as of the end of the year.
About BASF Intermediates
The BASF Group's Intermediates division develops, produces and markets a comprehensive
portfolio of more than 600 intermediates around the world. The most important of the division's
product groups include amines, diols, polyalcohols, acids and specialties. Among other applications,
intermediates are used as starting materials for coatings, plastics, pharmaceuticals, textile fibers,
detergents and crop protectants. Innovative intermediates from BASF help to improve the properties
of final products and the efficiency of production processes. The ISO 9001:2000-certified
Intermediates division operates plants at production sites in Europe, Asia, and the Americas. Around
the globe, 2,763 employees of the division generated sales to third parties of about €2.7 billion in
Purac is a leading company in lactic acid based chemistry and the worldwide market leader in lactic
acid, lactic acid derivatives and lactides. Purac is innovation driven and develops new products,
technology and services in close cooperation with customers and knowledge centers. Purac has
almost 80 years of experience in the development, manufacturing and marketing of its products in a
broad range of industries. Purac operates production plants in the USA, the Netherlands, Spain,
Brazil and Thailand and markets its products through a worldwide network of sales offices and
distributors. Purac is headquartered in The Netherlands and is part of CSM.
CSM is global market leader in lactic acid and lactic acid derivatives and is the largest supplier of
bakery products worldwide. CSM operates in business-to-business markets throughout Europe,
North America, South America, and Asia, generates annual sales of €3.1 billion and has a
workforce of around 9,700 employees in 28 countries.
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