BioAmber and Vinmar international to sign 15 year contract on succinic acid

BioAmber declared today to sign up a take or pay contract of 210,000 per year with Vinmar International. The leading industrial biotechnology company signed this contract for biosuccinic acid under rules of 15 year agreement. According to the contract, the joint venture of Mitsui & Co. and BioAmber, BioAmber Sarnia commits to sell 10K tons of succinic acid per annum through the 30,000 ton per year capacity while Vinmar commits to purchase the same. This 15 year agreement of production and sales of succinic acid is based upon the under constructed plant in Sarnia which will offer production facilities to BioAmber.

Read more on this matter here at -  http://www.cbs8.com/story/25958659/bioamber-signs-take-or-pay-contract-for-three-bio-succinic-acid-plants

The under constructed plant for the production of biosuccinic acid is the part of this master take off agreement  which will undergo expansion up to annual capacity of 70K ton of bio-succinic acid and100K tons of bio BDO. Alternatively, Vinmar can secure extra bio-succinic acid tonnage under the take-or-pay contract in case BioAmber does not commits rest of the volume at the time financing of the plant becomes secured.

In the projected plant for biosuccinic acid, Vinmar plans to invest 10 percent of the equity; BioAmber expects to start the plant till 2020on the basis of projected development of the succinic acid industry.