Solazyme and Bunge Enter Into Joint Venture Expansion Framework Agreement for Solazyme Bunge Renewable Oils
Solazyme (NASDAQ: SZYM), a renewable oil and bioproducts company, announced today that it has entered into a Joint Venture Expansion Framework Agreement with Bunge Global Innovation LLC (“Bunge”), a wholly-owned subsidiary of Bunge Limited (NYSE: BG), a leading global agribusiness and food company.
The agreement sets forth the intent of the partners to expand joint venture-owned oil production capacity at Solazyme Bunge Renewable Oils from the current 100,000 metric tons under construction in Brazil to 300,000 metric tons by 2016 at select Bunge owned and operated processing facilities worldwide.
Also, the companies intend to expand the portfolio of oils to be produced out of their joint venture facility in Brazil. The expanded field and portfolio of oils would include certain tailored food oils for sale in Brazil, where Bunge is the largest supplier of edible oils through several of its retail brands. The parties intend to work together through joint market development to bring new healthy and nutritious edible oils to the Brazilian market.
“Solazyme's renewable oil technology provides the flexibility to produce multiple high value oils from a single facility. After building a strong commercial relationship together, we believe there is a broader scope of opportunities ahead of us,” said Ben Pearcy, Managing Director, Sugar & Bioenergy, and Chief Development Officer, Bunge Limited.
“Bunge's global presence in sugar, significant presence in vegetable oil markets and large-scale processing experience make it an ideal partner for Solazyme. Our shared experience to date makes capacity expansion together a very attractive proposition and we look forward to rapid commercialization of the tailored oils we will produce,” said Jonathan Wolfson, CEO, Solazyme.
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